10 of the Best Bank Stocks to Buy for 2025: Analysts’ Insights

As investors look towards 2025, analysts are optimistic about the banking sector, suggesting that solid economic growth and favorable regulatory conditions could drive notable loan growth. With the potential for a rebound in mergers and acquisitions boosting investment banks’ fee revenue, carefully selected bank stocks may present valuable opportunities. This report outlines ten bank stocks identified by CFRA analysts as having strong upside potential.

Key Highlights and Market Overview

The analysis comes amidst a backdrop of uncertainty within the market due to ongoing concerns about President Donald Trump’s tariff policies and potential impacts from aggressive federal layoffs. Analysts caution that some bank stocks may face credit risks if the U.S. economy tips into a recession. Therefore, prudent selection within the banking sector could be critical for investors in 2025. ## Top Bank Stocks for 2025

The following ten bank stocks are highlighted for their impressive growth potential, along with their projected upside percentages:

1. JPMorgan Chase & Co. (JPM) – Expected upside: 29.6%

   • As one of the largest global financial services firms, JPMorgan holds nearly $4 trillion in assets. Analyst Kenneth Leon notes that approximately 75% to 80% of the firm’s revenue comes from domestic sources, making it heavily tied to the U.S. economy’s health. The firm is expected to benefit from an increasing number of midsize companies seeking services from larger institutions, leading CFRA to set a "buy" rating and a target price of $310. 2. Bank of America Corp. (BAC) – Expected upside: 25.5%
   • Another significant player, Bank of America, is poised to see a resurgence in investment banking driven by pro-business policies. Leon anticipates exceeding consensus estimates with a "buy" rating and a price target of $53. 3. Wells Fargo & Co. (WFC) – Expected upside: 29.1%
   • Analyst Alexander Yokum has confidence in Wells Fargo’s restructuring efforts under CEO Charles Scharf, as well as improvements anticipated in its credit card division. He has a "buy" rating with a $94 price target for WFC stock.

2. HSBC Holdings PLC (HSBC) – Expected upside: 17.2%

   • HSBC is notable for its significant exposure to Asia, which coupled with a bullish outlook for the region, positions it favorably. Analyst Firdaus Ibrahim suggests that planned divestments and a focus on profit improvement could drive HSBC’s earnings growth, resulting in a "buy" rating and a target price of $69. 5. Royal Bank of Canada (RY) – Expected upside: 26.1%
   • Canada’s largest commercial bank has historically shown resilience in downturns. With improvements expected in earnings and a "buy" rating set at a price target of $144, this bank is considered a strong contender.

3. Citigroup Inc. (C) – Expected upside: 25.9%

   • Citigroup is focusing on institutional banking growth and has effectively executed a turnaround strategy, helping to streamline operations. CFRA has given it a "buy" rating and a target of $90. 7. PNC Financial Services Group Inc. (PNC) – Expected upside: 52.4%
   • PNC is positioned well to enhance its net interest margin and is expected to outperform consensus estimates due to favorable market conditions. Analysts have a "strong buy" rating and a price target of $265. 8. NatWest Group PLC (NWG) – Expected upside: 5.6%
   • The U.K. bank is focusing on profitability through digital transformation and cost-cutting measures that have already shown significant operational efficiency improvements.

4. M&T Bank Corp. (MTB) – Expected upside: 46.8%

   • M&T has received favorable reviews due to its strong community ties and growth strategies tailored to local markets, making it a worthy consideration.

5. Fifth Third Bancorp (FITB) – Expected upside: 49.5%

   • This bank is seen as having robust prospects in the Midwest and is expected to benefit from rising interest rates, enhancing profitability further.

Conclusion

Investors looking toward bank stocks in 2025 have several promising options. With numerous factors at play—including potential economic growth, regulatory improvements, and evolving consumer needs—these ten banks have positioned themselves strategically to navigate any upcoming challenges and leverage growth. Investors are advised to conduct thorough research and consider their financial strategies when exploring these opportunities.

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