10 Best Bank Stocks to Buy in 2025

4. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 72

Wells Fargo & Company (NYSE:WFC) is an American financial services company that owns the Wells Fargo Bank, which is considered among the ‘Big Four’ banks in the United States. It is one of the best bank stocks to buy in 2025.

The company also has a significant international presence, serving 68 million customers worldwide. It also boasts an extensive network of over 5,600 branches and around 11,000 ATMs that are open 24/7, providing it a competitive edge over most of its smaller competitors.

Wells Fargo & Company (NYSE:WFC) has been actively focusing on expanding its offerings. In September, it announced a multi-year cooperation agreement with the Volkswagen Group of America, under which WFC will be the preferred vehicle purchase financing provider for the Audi, Ducati, and Volkswagen brands in the United States. The new partnership is expected to commence in April 2025.

WFC has also partnered with Expedia to introduce two new co-branded credit cards, One Key and One Key+, that allow users to earn rewards for hotels, car rentals, flights, and more on Expedia, Hotels.com, and Vrbo. Moreover, these cards also feature handsome welcome bonuses worth between $300 and $400. New launches such as this have propelled Wells Fargo & Company (NYSE:WFC)’s customer reach. As of October 2024, the company had nearly 2 million new credit card accounts year-to-date.

The company had a stellar third quarter, reporting a net income of $5.1 billion, an ROE of 11.7%, and an ROTCE of 13.9%. All of these metrics improved sequentially from Q2. Moreover, this was the 13th straight quarter of credit card balance growth. WFC is also seeing a steady increase in its fee-based revenue, which had grown 16% during the first nine months of 2024.

Wall Street analysts are bullish on the stock heading into 2025, with a consensus Buy rating. Hedge fund sentiment also remains strong. According to Insider Monkey’s database for Q3 2024, 72 hedge funds had investments in the company.