10 Best Bank Stocks to Buy in 2025

7. Morgan Stanley (NYSE:MS)

Number of Hedge Fund Holders: 55

Morgan Stanley (NYSE:MS) is a global financial services company that provides a range of investment banking, securities, wealth management, and investment management services to corporations, financial institutions, governments, and individuals. As of January 13, 2025, it ranks 41st on the Fortune 500 list of the largest companies in the U.S. by revenue.

On October 16, the company announced financial results for the third quarter of fiscal 2024. The net revenue was recorded at $15.4 billion, up 16% from last year, driven by strong results across business segments. Morgan Stanley (NYSE:MS)’s net income stood at $3.2 billion, translating to a diluted EPS of $1.88, an improvement from $1.38 per diluted share a year ago. ROTCE for the quarter was 17.5%.

Net revenues at the Institutional Securities division grew 19% from last year to $6.8 billion, supported by the global reach of its Integrated Investment Bank and benefits of scale. The Wealth Management division delivered a record quarter, with net revenues increasing by 14% year-over-year to reach $7.3 billion. The Investment Management business also saw a 15% surge in revenue.

Total client assets across Wealth and Investment Management were measured at $7.6 trillion, with the firm on track to reach the $10 trillion mark. Morgan Stanley (NYSE:MS) also declared a dividend of $0.925 per share to be paid on November 15 and repurchased $0.8 billion worth of common stock as part of its Share Repurchase Program.

Wall Street analysts anticipate robust returns for Morgan Stanley (NYSE:MS) for the fourth quarter, as several large banks reportedly benefited after trading and dealmaking activity picked up following Donald Trump’s election win. It is one of the best bank stocks to buy in 2025, with 55 hedge funds having a stake in the company, according to Insider Monkey’s database for Q3 2024.