10 Best Bank Stocks to Buy for 2025: Analysts Highlight Top Picks Amid Market Uncertainty
As investors gear up for 2025, many analysts are optimistic about solid economic growth and a favorable regulatory environment helping banks generate strong loan growth. However, rising market uncertainties, including geopolitical tariff policies and federal layoffs, could challenge some banking stocks. Selecting the right bank stocks will be critical for investors looking to capitalize on opportunities while mitigating risks in the coming year.
CFRA, a leading independent investment research firm, has identified 10 bank stocks with significant upside potential heading into 2025. These recommendations consider factors such as asset management strength, revenue growth prospects, operational efficiencies, and the ability to navigate economic fluctuations. Below is an overview of these top bank stock picks, their outlooks, and key factors driving their potential.
1. JPMorgan Chase & Co. (Ticker: JPM)
JPMorgan Chase is one of the world’s largest financial services firms, overseeing nearly $4 trillion in assets. According to analyst Kenneth Leon, JPMorgan’s 2025 performance will be closely tied to U.S. economic health, as the company derives 75% to 80% of its revenue domestically. JPMorgan is expanding market share across various banking sectors and benefiting from mid-sized companies shifting loans to larger banks. CFRA assigns a "buy" rating with a price target of $310, marking a 29.6% upside from its $239.11 closing price on March 19. —
2. Bank of America Corp. (Ticker: BAC)
Bank of America, a major player in commercial banking, investment banking, and wealth management, stands to benefit from a recovery in investment banking activities driven by pro-business policies. Leon notes that Bank of America has the third-highest global investment banking fee revenue and expects the bank to exceed net interest income (NII) and investment banking income forecasts in 2025. CFRA rates BAC as a "buy" with a target price of $53, representing 25.5% upside from its March 19 close of $42.21. —
3. Wells Fargo & Co. (Ticker: WFC)
Wells Fargo is a prominent U.S. bank with a focus on domestic lending. Analyst Alexander Yokum projects improvements from the 13.4% return on tangible common equity reported in 2024. CEO Charles Scharf’s restructuring efforts, especially investments in credit cards with significant recent growth, bolster confidence in the bank’s prospects. Moreover, Wells Fargo may see regulatory relief if its punitive asset cap is lifted in 2025. CFRA has a "buy" rating and a $94 price target, indicating 29.1% potential upside from $72.76. —
4. HSBC Holdings PLC (Ticker: HSBC)
As a global banking giant serving over 40 million customers, HSBC’s strong presence in Asia positions it well for long-term growth. Analyst Firdaus Ibrahim highlights HSBC’s expected gains from declining interest rates and growth in asset management and private banking fees. The divestment of underperforming businesses has further enhanced HSBC’s profitability outlook. CFRA gives HSBC a "buy" rating with a $69 target price, about 17.2% above its $58.85 close.
5. Royal Bank of Canada (Ticker: RY)
Canada’s largest commercial bank, Royal Bank of Canada, including its U.S.-based City National subsidiary, is praised for consistently leading in return on equity and weathering economic downturns. Cost-cutting at City National and fewer deposit pricing pressures are expected to boost earnings. CFRA assigns RY a "buy" rating with a $144 target, projecting a 26.1% gain from the recent $114.22 closing price.
6. Citigroup Inc. (Ticker: C)
Citigroup, a diversified global bank, has executed an effective turnaround strategy, focusing on institutional banking and technology-driven treasury services. The bank plans to exit consumer banking operations in Mexico, streamlining its business and reducing payroll overhead. Leon forecasts modest 4.1% revenue growth for 2025. CFRA rates Citigroup as a "buy" with a $90 price target, or 25.9% upside from $71.44. —
7. PNC Financial Services Group Inc. (Ticker: PNC)
PNC, a top U.S. bank offering corporate and institutional banking, is expected to improve its net interest margin from 2.75% to nearly 3% in 2025. Analyst Yokum predicts consensus net interest income estimates are too conservative, meaning PNC could exceed earnings expectations. Factors such as lower funding costs and loan growth support a bullish outlook. CFRA’s "strong buy" rating comes with a $265 target price, yielding 52.4% upside versus the $173.83 close.
8. NatWest Group PLC (Ticker: NWG)
The U.K.’s leading retail and corporate bank, NatWest, has significantly improved operational efficiency, cutting its cost-to-income ratio from 74% in 2020 to 53.4% in 2024. Digital transformation and balance sheet management are expected to drive future profitability. CFRA’s rating remains positive, despite a modest 5.6% upside projection.
9. M&T Bank Corp. (Ticker: MTB)
M&T Bank is highlighted for its strong fundamentals and potential to leverage economic growth in its lending markets. CFRA suggests notable upside potential, with a 46.8% price appreciation forecast.
10. Fifth Third Bancorp (Ticker: FITB)
Fifth Third Bancorp, another prominent U.S. bank, is poised for strong growth due to improving loan dynamics and cost efficiencies. CFRA assigns a "buy" rating with an expected 49.5% upside.
Final Thoughts
While economic uncertainty and policy changes continue to create challenges, these 10 bank stocks have been identified by analysts as well-positioned to deliver solid returns in 2025. Investors are advised to consider exposure to these banks—many of which combine strong domestic and international operations, robust management strategies, and improving profitability metrics—to capitalize on market opportunities while managing credit risks.
Note: All price targets and ratings are as of March 19, 2025. Investors should conduct their own due diligence and consider individual risk tolerance before investing.