The best bank stocks to buy in December 2024

After a volatile 2023, most U.S. regional bank stocks stabilized in 2024. Looking ahead to 2025, analysts anticipate that solid economic growth and a friendly regulatory environment could help banks generate impressive loan growth, with a potential rebound in investment banking and mergers and acquisitions helping boost fee revenue.
At the same time, falling interest rates could pressure net interest margins, and bank stocks could face credit risks if the U.S. economy slips into a recession. Bank stock selection is critical in 2025, so here are 10 of the best bank stocks to buy today, according to CFRA:

The best bank stocks to buy in December 2024

 

JPMorgan Chase & Co. (JPM)

JPMorgan Chase is one of the largest global financial services companies, with about $4 trillion in assets. Analyst Kenneth Leon says JPMorgan operates a well-diversified banking business and is gaining wallet share from competitors in several areas. He says JPMorgan will benefit from a rebound in investment banking, as well as less global competition for debt underwriting, initial public offerings, equity secondaries, and merger and acquisition advisory fees. Leon says JPMorgan also has opportunities to grow its midsize business customer base. CFRA has a “buy” rating and $275 price target for JPM stock, which closed at $243.40 on Dec. 4.

Bank of America Corp. (BAC)

Bank of America is one of the largest U.S. commercial and investment banks and wealth management services providers. Leon says the Donald Trump administration will likely implement pro-business policies that will lead to a surge in capital markets and investment banking activity in 2025, and Bank of America will be a big winner. Leon projects solid loan volume growth and a stable U.S. economy, and he anticipates Bank of America will exceed consensus expectations for both net interest income and investment banking revenue in 2025. CFRA has a “buy” rating and $53 price target for BAC stock, which closed at $46.37 on Dec. 4.

Wells Fargo & Co. (WFC)

Wells Fargo is one of the largest U.S. banks, lending mostly within the U.S. market. Analyst Alexander Yokum says Wells Fargo CEO Charles Scharf has done a commendable job of improving its operational efficiency and resolving the bank’s regulatory issues, and the company’s $1.95 trillion punitive asset cap that has been in place since 2018 may finally be removed in 2025. If it’s removed, Yokum says Wells Fargo’s reputation will get an immediate boost and the company should report improved deposit and loan growth. CFRA has a “buy” rating and $92 price target for WFC stock, which closed at $73.06 on Dec. 4.

Royal Bank of Canada (RY)

Royal Bank of Canada is the largest commercial bank in Canada and also owns City National in the U.S. Yokum says Royal Bank of Canada is positioned to outperform its peers, even as the Canadian economy faces growth pressures. He says the bank’s superior earnings profile and solid track record of navigating periods of economic weakness make it a more appealing investment than many other Canadian bank stocks. Yokum says its capital markets business has been particularly impressive, and Royal Bank of Canada has consistently gained market share. CFRA has a “buy” rating and $143 price target for RY stock, which closed at $125.36 on Dec. 4.

HSBC Holdings PLC (HSBC)

HSBC is one of the world’s largest banking and financial services providers and has more than 39 million customers. Analyst Firdaus Ibrahim says the biggest reason to buy HSBC is the bank’s exposure to high-growth regions in Asia. He says investors shouldn’t be concerned about periodic weakness in the Chinese real estate market because the Chinese government has consistently stepped in to support the real estate sector via stimulus measures. In addition, Ibrahim says HSBC’s aggressive capital return program is a great reason to own the stock. CFRA has a “buy” rating and $52 price target for HSBC stock, which closed at $47.35 on Dec. 4.

Citigroup Inc. (C)

Citigroup is a diversified global bank and financial services company. Leon is bullish on Citigroup’s restructuring efforts and positioning for long-term institutional growth. He says the bank is a market leader in technology platforms, corporate treasury services and global wealth. Citigroup plans to exit its consumer banking business in Mexico in 2025, which will further streamline its business. Leon says its plans to divest 14 consumer banks outside of the U.S. and the elimination of 20,000 employees will help Citigroup deliver consistent, transparent operating results. CFRA has a “buy” rating and $73 price target for C stock, which closed at $71.50 on Dec. 4.

PNC Financial Services Group Inc. (PNC)

PNC Financial Services is one of the largest U.S. banks, offering asset management and traditional, corporate, and institutional banking services. Yokum says PNC’s management team has helped the bank navigate elevated interest rates and reduce risk by repositioning its securities portfolio. The bank has also significantly dialed back its exposure to commercial real estate offices to just 2.2% of total loans. Yokum says PNC’s new cash-back credit card is a step in the right direction as it looks to boost consumer lending products revenue. CFRA has a “strong buy” rating and $255 price target for PNC stock, which closed at $207.92 on Dec. 4.

M&T Bank Corp. (MTB)

M&T Bank is a U.S. regional, commercial-focused bank offering banking, trust and investment services primarily in the Northeast and Mid-Atlantic regions. Yokum says M&T has reduced its commercial real estate exposure by 15% in the past year, reducing its risk profile. In addition, he says M&T’s loan growth will outperform peers in 2025 as deposit costs fall along with interest rates. The bank is well capitalized, and Yokum says M&T did an excellent job of managing its portfolio during previous lower-rate periods. CFRA has a “strong buy” rating and $260 price target for MTB stock, which closed at $211.88 on Dec. 4.

Fifth Third Bancorp (FITB)

Fifth Third Bancorp is a U.S. regional bank that offers retail and commercial banking, consumer lending and asset management services in the Midwest and Southeast regions. Yokum says Fifth Third’s balances are near all-time highs, evidence that the bank is outmaneuvering many of its competitors in both growth and pricing. He says Fifth Third’s 70% loan-to-deposit ratio gives the bank flexibility to shift focus to loan growth if demand improves. For now, Yokum says the bank will likely continue to prioritize share buybacks. CFRA has a “strong buy” rating and $54 price target for FITB stock, which closed at $46.86 on Dec. 4.

First Citizens BancShares Inc. (FCNCA)

First Citizens BancShares is a family-controlled U.S. bank that operates primarily in the Carolinas and California. Yokum says the bank has benefited from a more diverse, improved operating model, which has significantly improved its earnings profile in recent years. He says the First Citizens management team has a history of taking calculated, opportunistic risks that create value for investors, including its acquisitions of CIT in 2022 and Silicon Valley Bank in 2023. Yokum says SVB is particularly well positioned to capitalize on a large backlog of exit deals. CFRA has a “buy” rating and $2,350 price target for FCNCA stock, which closed at $2,197.92 on Dec. 4.