10 Best Bank Stocks to Buy for 2025: Analysts Provide Insights

As the banking sector prepares for the uncertainties of 2025, several analysts project promising growth prospects for select bank stocks, driven by economic expansion and regulatory policies. Despite recent market volatility, particularly influenced by political and economic factors, investors are encouraged to consider banks that exhibit robust fundamentals and strategic positioning.

Economic Landscape

With a forecast for solid economic growth and a regulatory environment conducive to banking operations, analysts anticipate that many banks will experience significant loan growth in 2025. Additionally, a possible resurgence in mergers and acquisitions could further amplify fee revenue for investment banks. Given the unpredictable nature of the current market, including concerns tied to President Trump’s tariff policies and global economic crises, careful stock selection is recommended.

According to CFRA, here are 10 of the best bank stocks to consider for investment in 2025 based on their upside potential:

1. JPMorgan Chase & Co. (JPM) – Upside Potential: 29.6%

JPMorgan Chase, one of the world’s leading financial institutions with nearly $4 trillion in assets, is expected to thrive in 2025, primarily due to its domestic revenue streams, which contribute to 75% to 80% of total earnings. The bank’s ongoing efforts to capture market share from midsize companies further reinforce its growth trajectory. CFRA has issued a "buy" rating with a price target of $310, significantly higher than its recent price of $239.11. ### 2. Bank of America Corp. (BAC) – Upside Potential: 25.5%
With a strong footprint in both commercial and investment banking, Bank of America benefits from pro-business policies that are presumed to revitalize investment banking activity. Analysts project the bank will outperform consensus estimates regarding net interest income and investment banking revenue. CFRA has assigned a "buy" rating with a $53 price target, up from a recent closing price of $42.21. ### 3. Wells Fargo & Co. (WFC) – Upside Potential: 29.1%
As a significant player in the U.S. banking landscape, Wells Fargo is poised for recovery due to ongoing restructuring efforts. Analysts have noted improvements in return on tangible common equity and growth in its credit card segment. CFRA’s "buy" recommendation comes with a price target of $94, compared to its last closing price of $72.76. ### 4. HSBC Holdings PLC (HSBC) – Upside Potential: 17.2%
HSBC operates on a global scale, with a strong presence in Asia, which is viewed positively amid anticipated banking growth in the region. The bank has streamlined operations significantly, allowing for better profitability even as interest rates decline. CFRA’s "buy" recommendation supports a target price of $69, reflecting a considerable increase from its recent price of $58.85. ### 5. Royal Bank of Canada (RY) – Upside Potential: 26.1%
Recognized for its stability, Royal Bank of Canada boasts a historic track record of high return on equity. Analysts expect operational synergies from its U.S. subsidiary City National and lessened deposit pricing pressures to improve financial performance. A "buy" rating accompanies a price target of $144, significantly above the stock’s last closing price of $114.22. ### 6. Citigroup Inc. (C) – Upside Potential: 25.9%
Citigroup plans to increase its institutional banking footprint while successfully implementing a turnaround strategy. The bank’s diversification in technological and treasury services markets is projected to yield modest revenue growth in 2025. CFRA has projected a price target of $90, aiming higher from a closing price of $71.44. ### 7. PNC Financial Services Group Inc. (PNC) – Upside Potential: 52.4%
PNC is anticipated to benefit from improved net interest margins and accelerating loan growth. Analysts argue that current net income expectations are underestimated, positioning PNC for significant earnings beats. A "strong buy" rating reflects a target price of $265, well above the recent closing price of $173.83. ### 8. NatWest Group PLC (NWG) – Upside Potential: 5.6%
As a leading U.K. banking institution, NatWest is focused on digital transformation and enhanced operational efficiencies. Analysts suggest that disciplined growth strategies will bolster profitability going forward. Although the potential upside is lower, a "buy" rating remains applicable based on its strength in the market.

9. M&T Bank Corp. (MTB) – Upside Potential: 46.8%

M&T Bank has demonstrated strong growth strategies, leveraging its comprehensive understanding of regional markets. Analysts remain optimistic about the potential for recovery in both assets and market segments.

10. Fifth Third Bancorp (FITB) – Upside Potential: 49.5%

Fifth Third continues to focus on enhancing its service offerings while expanding its portfolio. Given its strategic initiatives, the stock is viewed favorably by analysts.

Conclusion

With an array of opportunities within the banking sector anticipated in 2025, investors are encouraged to closely monitor these stocks. Analysts recommend a cautious yet optimistic approach, given the evolving economic landscape and potential geopolitical factors that could affect market performance. Investing in these ten bank stocks may provide a solid foundation for navigating the upcoming financial climate.

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