10 of the Best Bank Stocks to Buy for 2025

As the financial sectors brace for potential upheavals and opportunities in 2025, analysts are optimistic about selecting bank stocks that are likely to outperform in the coming year. According to recent insights from CFRA, ten of the best bank stocks to consider for investment offer significant upside potential, driven by solid economic growth and favorable regulatory conditions. Here’s a closer look at these compelling investment opportunities and the factors contributing to their projected performance.

Economic Outlook and Investment Banking Recovery

Entering 2025, analysts forecast solid economic expansion, promising a substantial increase in bank loan generation. Additionally, there are hopes that a rebound in mergers and acquisitions could enhance revenue for investment banks through fees and other income sources. However, the financial landscape is not without its uncertainties. Concerns around geopolitical factors and the potential for credit risks amid economic volatility remain on investors’ minds.

Notable Bank Stocks and Their Potential Returns

JPMorgan Chase & Co. (JPM) – 29.6% Upside
JPMorgan Chase, a major player in global financial services, is expected to thrive given that roughly 75% to 80% of its revenue comes from the U.S. An analyst from CFRA highlights how the bank is poised for growth due to its expanding market share and the shift of businesses toward larger banks for their financial needs. The pricing target for JPM is set at $310, compared to its recent close of $239.11. 2. Bank of America Corp. (BAC) – 25.5% Upside
Bank of America stands as a leader in commercial banking and investment services. Analysts anticipate a resurgence in investment banking activities fueled by pro-business policies which should favorably impact its net interest income. The bank’s stock is projected to reach a target of $53, currently sitting at $42.21. 3. Wells Fargo & Co. (WFC) – 29.1% Upside
With a focus on U.S. lending, Wells Fargo is in the midst of a reformation aimed at enhancing its operational structure. The bank’s recent growth strategies show promising signs, making it a notable contender, with a projected price target of $94, compared to its current price of $72.76. 4. HSBC Holdings PLC (HSBC) – 17.2% Upside
As one of the world’s largest banks, HSBC’s significant exposure to Asia’s economic landscape positions it advantageously. Analysts predict strong growth in asset management and fee income, which could lead to significant returns, with a price target of $69 from its current value of $58.85. 5. Royal Bank of Canada (RY) – 26.1% Upside
This strong Canadian bank is praised for its robust returns and strategic performance during downturns. Predictions for fewer deposit pricing pressures hint at improved earnings, setting a target price of $144 against a current price of $114.22. 6. Citigroup Inc. (C) – 25.9% Upside
Citigroup is recognized for its versatile banking services and has effectively executed a turnaround strategy. With plans to streamline operations, analysts project modest growth in revenues, giving it a target price of $90 compared to a close of $71.44. 7. PNC Financial Services Group Inc. (PNC) – 52.4% Upside
PNC is noted for its comprehensive range of banking services, with expectations of an improving net interest margin and solid loan growth. A strong buy rating and a lofty price target of $265 signals significant potential compared to its last price of $173.83. 8. NatWest Group PLC (NWG) – 5.6% Upside
This leading U.K. bank is focusing on digital transformation and operational efficiencies. Analysts foresee gradual profitability increases, albeit with a more conservative upside. Its target price remains at $12.13 as improvements advance.
M&T Bank Corp. (MTB) – 46.8% Upside
M&T has exhibited impressive growth over recent quarters, which has led to a bullish stance on its stock. Analysts expect it to achieve a target of $160 from a recent close of $109.05. 10. Fifth Third Bancorp (FITB) – 49.5% Upside
Fifth Third is another bank capitalizing on a solid growth trajectory. Analysts mark a target of $46, expecting it to rise from its present price of $30.78. ## Conclusion

With a thorough understanding of the bank stocks showcased above, investors who strategically allocate their resources towards these likely outperformers could set themselves up for substantial gains by 2025. As always, investors should remain vigilant about market trends and individual company performances to make informed decisions in their financial journeys.