The 3 Best Bank Stocks to Buy for 2025

As we step into 2025, investors are looking for promising opportunities in the banking sector. With a new administration in the White House and a more favorable regulatory environment on the horizon, banks are poised for growth. Here are three bank stocks that stand out as strong contenders for the coming year.

1. KeyCorp (NYSE: KEY)
KeyCorp is a regional bank with a strong presence in the Midwest and Northeast United States. The company has been on a roll in 2024, with its stock price up 25.9% year-to-date as of December 13. KeyCorp's recent approval for an additional investment by Bank of Nova Scotia (Scotiabank) has raised speculation that the company could be a merger target. While this is uncertain, analysts remain bullish on KEY stock, with a consensus price target of $19.16, which is a 5.6% increase from its current price. KeyCorp's high-yield dividend, with a current yield of 4.53%, is another attractive feature for income-oriented investors.



2. Regions Financial Corp. (NYSE: RF)
Regions Financial is another regional bank with a strong footprint in the Southern United States. The company's stock has been one of the sector's strongest performers in 2024, up over 50% at one point in early December. Analysts are bullish on RF stock, with a consensus price target of $27.61, which is over 10% higher than its current price. Regions Financial's balanced and diversified portfolio, along with its well-capitalized position for Basel III Endgame requirements, has contributed to its strong performance. The company's recent earnings report also highlighted its solid capital position, with a CET1 ratio of 10.6%.



3. Huntington Bancshares Inc. (NASDAQ: HBAN)
Huntington Bancshares is a regional bank with a strong presence in the Midwest and Southeast regions of the United States. The company's stock has been one of the best-performing regional bank stocks in 2024, up 34.3% year-to-date as of December 13. Huntington Bancshares' strategic focus on commercial deposits and money market growth over certificates of deposit (CDs) has driven its strong performance. The company's deposit mix, which has recently focused on commercial deposits, and its growing money market business have contributed to its solid capital position. Analysts at JPMorgan Chase have a bullish outlook on HBAN stock, expecting earnings to grow 6% above estimates in 2025.



In conclusion, KeyCorp, Regions Financial, and Huntington Bancshares are three regional bank stocks that have shown strong performance in 2024 and are well-positioned for growth in 2025. With a more favorable regulatory environment on the horizon and a strong focus on capitalization and strategic initiatives, these banks are attractive investment opportunities for the coming year. As always, investors should conduct their own research and consider their risk tolerance before making any investment decisions.