10 Best Bank Stocks to Buy in 2025

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 105

JPMorgan Chase & Co. (NYSE:JPM) is an American financial services company, headquartered in New York City that provides a range of investment banking and asset management solutions for a diverse client base. For the past four years, it has been the largest bank in the U.S. for retail deposits.

On January 15, the company reported results for the fourth quarter of 2024. It topped estimates for both revenue and profit, driven by better-than-expected net interest income and strong investment banking results. Profit soared by 50% from last year to reach $14 billion, helped by a 7% drop in non-interest expenses.

Profit for the full year 2024 stood at $58.5 billion, which was a record annual profit for the company. Analysts have credited the strong results to an improving economy and a revival in the banking industry as deal-making activities surge amid a decline in interest rates. Looking ahead, JPMorgan Chase & Co. (NYSE:JPM) expects a boost in net interest income, anticipating a figure of $94 billion for 2025, against analysts forecasts of $91 billion.

The company is also a generous dividend payer. During the quarter, it distributed a common dividend of $3.5 billion or $1.25 per share. JPMorgan Chase & Co. (NYSE:JPM) was recently ranked first by Insider Monkey in its list of the Top 20 Dividend Stocks of 2024. Analysts expect the bank to continue sustaining strong shareholder returns given its robust financial performance.

Wall Street analysts are bullish on the stock with a consensus Buy rating. According to Insider Monkey’s database for Q3 2024, 105 hedge funds held a stake in the company.

Overall, JPM ranks first among the 10 Best Bank Stocks to Buy in 2025. While we acknowledge the potential of banking companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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