CFRA predicts that banks will outperform the benchmark S&P 500 in 2025
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CFRA expects banks to outperform the broader S&P 500 index (SP500) next year, driven primarily by sustained growth prospects and the anticipated impact of the incoming Trump administration, which is set to take office in January.
“We think global U.S. bank stocks are set to outperform the S&P 500 in 2025, given favorable fundamental trends and key drivers,” CFRA’s thematic research team said.
The organization further stated its belief that the Trump administration will introduce new policies and reduce regulations, which could positively influence capital markets and the investment banking sector. As a result, CFRA anticipates that banks and related stocks will benefit from an expanding economy coupled with a less restrictive regulatory environment.
The financial services firm went on to highlight a handful of names that it has on its radar as the calendar looks to flip the page to 2025. See 10 of the names below along with each stock’s year-to-date performance:
- Bank of America (BAC) +41.8% YTD.
- Citigroup (C) +35.6% YTD.
- Goldman Sachs (GS) +56.9% YTD.
- JPMorgan Chase (JPM) +46.9% YTD.
- Morgan Stanley (MS) +40.7% YTD.
- Barclays (BCS) +66.7% YTD.
- Deutsche Bank (DB) +20.3% YTD.
- BNP Paribas (OTCQX:BNPQF) -16% YTD.
- HSBC Holdings (HSBC) +14.2% YTD.
- UBS Group (UBS) +0.9% YTD.
While CFRA did not specifically mention any exchange-traded funds, investors can still look towards the space for a more diversified grouping of stocks that fall within the financial services and banking industries. See a group of potential funds below:
Financials ETFs: (XLF), (VFH), (IYF), (FNCL), (IYG), and (FXO).