10 of the Best Bank Stocks to Buy for 2025

As we approach 2025, many analysts are optimistic about the potential for several bank stocks to thrive in a solid economic environment accompanied by a favorable regulatory landscape. With expectations for robust loan growth and a possible surge in mergers and acquisitions, certain bank stocks are being highlighted for their strong upside potential. According to CFRA, here are ten of the best bank stocks to consider for investment in 2025. ## Economic Context

Coming into the new year, the banking sector appears positioned for recovery amid promises of solid national economic growth. Analysts cite potential benefits from a growing number of midsize companies that may shift their banking services back to larger institutions. Nevertheless, risks including uncertainty around government policies, such as those introduced during the Trump administration, could have ramifications for the sector.

Top Bank Stocks to Watch

JPMorgan Chase & Co. (Ticker: JPM)
With nearly $4 trillion in assets, JPMorgan Chase stands as a giant in the financial services landscape. Analyst Kenneth Leon notes that approximately 75% to 80% of the company’s revenue is derived from the U.S. market. JPMorgan’s market share growth in various banking sectors is expected to drive performance in 2025. CFRA maintains a "buy" rating and sets a price target of $310, up from its closing price of $239.11 on March 19. 2. Bank of America Corp. (Ticker: BAC)
Another key player, Bank of America, is anticipated to benefit from the increasing investment banking activity attributed to pro-business policies. Analysts expect strong net interest income (NII) growth, contributing significantly to overall revenue. CFRA has a "buy" rating along with a $53 price target, compared to the closing price of $42.21. 3. Wells Fargo & Co. (Ticker: WFC)
As one of the largest U.S. banks, Wells Fargo’s ongoing restructuring and investments in its credit card division have shown promise for improving returns. Analyst Alexander Yokum forecasts a potential lift on asset cap restrictions. The "buy" rating from CFRA accompanies a price target of $94 against its closing price of $72.76. 4. HSBC Holdings PLC (Ticker: HSBC)
Known for its global presence and strong growth in Asia, HSBC is seen as a good investment opportunity. Analyst Firdaus Ibrahim points out the bank’s ability to enhance profitability through divestments of underperforming sectors. HSBC holds a "buy" rating with a price target of $69, noting its recent close at $58.85. 5. Royal Bank of Canada (Ticker: RY)
The largest commercial bank in Canada, Royal Bank is anticipated to maintain its well-established return on equity and benefit from synergies related to mergers. Yokum projects fewer pressures on deposit pricing heading into 2025, with a price target of $144 up from its closing price of $114.22. 6. Citigroup Inc. (Ticker: C)
Citigroup is recognized for its strong institutional banking growth strategy, complemented by a focus on technological advancements. Analyst Kenneth Leon sees these factors enhancing long-term value and giving Citi a "buy" rating with a price target set at $90, against a closing price of $71.44. 7. PNC Financial Services Group Inc. (Ticker: PNC)
PNC is in a position to improve its net interest margin, with expectations to beat consensus net income forecasts. Increased loan demand and falling funding costs make this stock particularly attractive. CFRA has a strong buy rating, with a price target of $265 compared to its closing value of $173.83. 8. NatWest Group PLC (Ticker: NWG)
With a keen focus on digital advancements, NatWest has shown notable improvements in operational efficiencies. Analyst Ibrahim highlights its strong management strategies to drive profitability, resulting in a more conservative approach to loans. NatWest has a modest upside potential with a 5.6% outlook.
M&T Bank Corp. (Ticker: MTB)
M&T Bank is also positioned favorably, and analysts suggest that it could see significant stock growth in the coming term.
Fifth Third Bancorp (Ticker: FITB)
Fifth Third Bancorp’s improvements and strategies suggest high potential, with CFRA indicating a significant upside of 49.5%.

Conclusion

With a range of factors influencing the banking sector, investors are advised to consider selective bank stocks for their 2025 portfolios. As always, thorough research and consideration of market conditions are essential when making investment decisions. Keep an eye on these ten bank stocks, as they may provide solid returns amidst an evolving economic landscape. For more insights into stock trends and updates, subscribe to the Smart Money Mindset newsletter.