We recently compiled a list of the 13 Best Performing Bank Stocks So Far In 2025. In this article, we are going to take a look at where Itaú Unibanco Holding S.A. (NYSE:ITUB) stands against the other bank stocks.
The banking sector seems to be performing well in 2025 as the economy has been stronger than expected. Banking and financial services companies are taking more chances and investing in growth, especially in AI. At the same time, central banks around the world continue to lower interest rates, which is further helping the banks.
READ ALSO: 10 Unrivaled Stocks of the Next 5 Years and 10 Best Low Priced Technology Stocks To Buy Now.
In December 2024, Seana Smith, the anchor of Yahoo Finance’s morning show, pointed out that it might be a good time to buy bank stocks. Heading into 2025, that was the overwhelming consensus among well-known strategists. The reasons for optimism around bank stocks included a strong economy, expected deregulation under President-elect Donald Trump, attractive stock prices, and lower interest rates.
Brian Belski, Chief Investment Strategist and leader of the Investment Strategy Group at BMO Capital Markets, noted in his 2025 outlook that financial stocks are still “drastically unloved,” despite compelling valuations and strong earnings growth expectations. Aadil Zaman from Wall Street Alliance Group mentioned that the Federal Reserve’s expected drop in interest rates would result in greater investment banking activity.
Another reason for the sky-high enthusiasm was that historically, financial stocks have performed well under Republican administrations because of expectations for looser regulation, which creates a more favorable environment for banks.
Methodology
To compile our list of the 13 best-performing bank stocks so far in 2025, we used the Finviz stock screener to look for bank companies with the best year-to-date performance. We narrowed down our list by looking for the best-performing stocks with a market capitalization of more than $2 billion. The 13 best-performing bank stocks so far in 2025 were then ranked in ascending order based on their year-to-date performance as of February 14, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding the best-performing stocks, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An executive in a suit walking through a lobby of *Regional Bank* building.
Itaú Unibanco Holding S.A. (NYSE:ITUB)
Year-to-Date Performance: 22.53%
Number of Hedge Fund Holders: 26
Itaú Unibanco Holding S.A. (NYSE:ITUB) is a Brazilian financial services company that ranks among the largest banking institutions in Latin America. The company attracts deposits and offers a comprehensive range of retail, commercial, corporate, and private banking services. Itaú Unibanco Holding (NYSE:ITUB) has a presence in 18 countries.
The company is making important investments in business operations and new technologies to increase its earnings and strengthen the company for the long term. Itaú Unibanco Holding (NYSE:ITUB) has made good progress with regard to its modernization and cloud migration efforts. In the Q4 2024 earnings call, management shared that these initiatives have led to a 99% reduction in high-impact incidents. Itaú Unibanco Holding (NYSE:ITUB) is also heavily investing in data science and artificial intelligence and it has more than 470 data scientists and over 390 initiatives using generative AI within the bank. The company is using, testing, and growing more than 1,300 AI models. Additionally, as part of the “One Itaú” project, the company aims to migrate 15 million single-product users to its primary app. By the end of 2024, Itaú Unibanco Holding (NYSE:ITUB) successfully migrated 5.3 million clients and plans to complete the migration of the remaining clients throughout 2025.
Overall, ITUB ranks 7th on our list of the best-performing bank stocks so far in 2025. While we acknowledge the potential of ITUB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ITUB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
