Banks and the financial services industry are currently doing well in Trump’s economy. The KBW Nasdaq Bank Index, which is designed to track the performance of the leading banks and thrift institutions, is up nearly 13% year-to-date as of July 18.
Another key measure, the Dow Jones US Financial Services Index, which is designed to measure the stock performance of US companies in the financial services sector, is also up nearly 12% so far this year as of July 18.
Wall Street is humming because of a surge in stock and bond trading. There has also been more activity as companies acquire other businesses and take out large loans. At the same time, consumers are continuing to spend money, borrow, and repay their loans, according to the latest reports from the biggest banks in the US.
In the second quarter of 2025, trading benefited from unpredictable market conditions because of Trump’s changing policy statements. Investment banking activity also surged. This involves mergers advice, IPOs, and debt and equity issuance.
Overall, it is proving to be a very profitable time for financial companies. The six largest banks in the US made around $39 billion in profit in the second quarter, exceeding analysts’ expectations and collectively surging over 20% from core earnings a year ago.
With this background in mind, let’s take a look at the 10 best financial stocks on Wall Street’s radar.
An iconic financial building in the background, with silhouettes of busy bankers walking past in the foreground.
Our Methodology
To compile our list of the 10 best financial stocks on Wall Street’s radar, we sifted through financial media reports and various online resources to look for financial stocks that were covered by Wall Street analysts on July 18, 2025. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 10 best financial stocks on Wall Street’s radar were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
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10 Best Financial Stocks on Wall Street’s Radar
10. F.N.B. Corporation (NYSE:FNB)
Number of Hedge Fund Holders: 32
F.N.B. Corporation (NYSE:FNB) is one of the best financial stocks on Wall Street’s radar. On July 18, Raymond James increased its price target on F.N.B. Corporation (NYSE:FNB) from $15 to $18 while keeping an “Outperform” rating.
This decision came after the company reported its second-quarter results. F.N.B. Corporation (NYSE:FNB) showed strong core performance, including lower costs for funding and asset repricing that helped improve both its net interest margin and net interest income.
Raymond James pointed out that F.N.B. Corporation (NYSE:FNB) showed improvements in its capital levels and asset quality during the second quarter. Additionally, fee revenues exceeded expectations.
F.N.B. Corporation (NYSE:FNB) increased its guidance for net interest income in 2025. However, Raymond James’ analysis suggests that this outlook might still be conservative if commercial loan growth pipelines accelerate as expected. The firm sees the risk-reward profile for F.N.B. Corporation (NYSE:FNB) as attractive at current levels.
F.N.B. Corporation (NYSE:FNB) is a diversified financial services company that offers a full range of commercial banking, consumer banking, and wealth management solutions. The company operates through its subsidiary network, which is led by its largest subsidiary, First National Bank of Pennsylvania.
9. Fifth Third Bancorp (NASDAQ:FITB)
Number of Hedge Fund Holders: 41
Fifth Third Bancorp (NASDAQ:FITB) is one of the best financial stocks on Wall Street’s radar. On July 18, DA Davidson maintained a “Buy” rating on Fifth Third Bancorp (NASDAQ:FITB) and kept its price target of $47.
The investment firm still has a positive view of the banking company despite noting that Fifth Third Bancorp (NASDAQ:FITB) has indicated loan growth will likely moderate in the second half of 2025. The company has also tempered its fee income growth guidance for the full year. This prompted DA Davidson to slightly reduce its earnings per share forecasts for Fifth Third Bancorp (NASDAQ:FITB).
According to DA Davidson, the company’s management is still aiming to deliver 150 to 200 basis points of positive operating leverage, even if the capital markets do not recover. The firm highlighted strong first-half 2025 performance and noted that Fifth Third Bancorp (NASDAQ:FITB) has several expense reduction options available.
Additionally, DA Davidson’s analysis suggests that the company is on track to achieve record net interest income even without interest rate cuts from the Federal Reserve or any further loan growth.
Fifth Third Bancorp (NASDAQ:FITB) is a bank holding company for Fifth Third Bank, which offers a wide range of financial services to individuals, families, and businesses.
8. Webster Financial Corporation (NYSE:WBS)
Number of Hedge Fund Holders: 42
Webster Financial Corporation (NYSE:WBS) is one of the best financial stocks on Wall Street’s radar. On July 18, Jefferies increased its price target for Webster Financial Corporation (NYSE:WBS) from $70 to $72 while keeping a “Buy” rating.
This decision came after the company reported its Q2 2205 earnings. Webster Financial Corporation (NYSE:WBS) reported core earnings per share of $1.52, surpassing both the consensus estimate of $1.42 and Jefferies’ estimate of $1.41.
Webster Financial Corporation’s (NYSE:WBS) core pre-provision net revenue (PPNR) for the quarter reached $370 million, exceeding Jefferies’ forecast of $356 million. The company’s management also raised its net interest income guidance.
According to Jefferies, the corporation also reported an improvement in credit quality this quarter and maintained a stable credit outlook.
The investment firm noted recent changes in federal law that broadened Health Savings Account (HSA) eligibility. This can significantly grow the addressable market for Webster Financial Corporation’s (NYSE:WBS) HSA Bank business.
Webster Financial Corporation (NYSE:WBS) is an American bank holding company for Webster Bank, which is a commercial bank that offers a broad range of financial products and services to businesses, individuals, and families.
7. Synovus Financial Corp. (NYSE:SNV)
Number of Hedge Fund Holders: 43
Synovus Financial Corp. (NYSE:SNV) is one of the best financial stocks on Wall Street’s radar. On July 18, Citi increased its price target for Synovus Financial Corp. (NYSE:SNV) from $57 to $65 and reiterated a Buy rating.
Citi pointed out the company’s strong quarterly loan growth, which the firm sees as one of the bank’s best performances in recent years.
The investment firm also noted that Synovus Financial Corp. (NYSE:SNV) plans to make a significant number of new hires over the next two to three years. This move is expected to help the company become a more growth-focused regional bank in the Southeast.
Additionally, Citi highlighted Synovus Financial Corp.’s (NYSE:SNV) strong expense management and credit trends that have consistently performed better than expected. This has contributed to positive shareholder value in both the short and the long term.
Citi slightly reduced its 2026 projections for Synovus Financial Corp. (NYSE:SNV), mainly because of talent acquisition and investment-related expenses. However, Citi’s analysis suggests that these expenses will likely help improve shareholder value in the long term.
Synovus Financial Corp. (NYSE:SNV) is an American financial services company that offers commercial and consumer banking and a full range of specialized products and services, including wealth services, treasury management, mortgage services, premium finance, asset-based lending, structured lending, capital markets, and international banking.
6. Citizens Financial Group, Inc. (NYSE:CFG)
Number of Hedge Fund Holders: 50
Citizens Financial Group, Inc. (NYSE:CFG) is one of the best financial stocks on Wall Street’s radar. On July 18, DA Davidson increased its price target for Citizens Financial Group, Inc. (NYSE:CFG) from $49 to $55 while keeping a “Buy” rating.
The research firm noted that the company reported “strong 2Q results” and gave a “positive update for 3Q.” This prompted DA Davidson to increase its earnings per share estimates for Citizens Financial Group, Inc. (NYSE:CFG).
DA Davidson noted that the banking company has reiterated its guidance for 2025 and still believes it can achieve an improvement of 150 basis points in pre-provision operating leverage in 2025.
The research firm also highlighted several strengths for Citizens Financial Group, Inc. (NYSE:CFG), including potential improvements in the net interest margin, the company’s private bank buildout, and its metro New York expansion efforts.
Citizens Financial Group, Inc. (NYSE:CFG) is an American bank holding company that offers a wide range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions.
5. M&T Bank Corporation (NYSE:MTB)
Number of Hedge Fund Holders: 52
M&T Bank Corporation (NYSE:MTB) is one of the best financial stocks on Wall Street’s radar. On July 18, Citi increased its price target for M&T Bank Corporation (NYSE:MTB) from $212 to $215 but kept a “Neutral” rating.
This decision came after the company reported its second quarter 2025 results. Citi described the latest quarterly results as strong, even though M&T Bank Corporation (NYSE:MTB) reported a lower-than-expected net interest income (NII) and set a lower minimum for its 2025 NII guidance range.
Citi has reduced its near-term deposit beta estimates for M&T Bank Corporation (NYSE:MTB) because of higher funding costs, which are putting pressure on net interest income. However, this impact is partially offset by the bank’s stronger balance sheet growth.
M&T Bank Corporation (NYSE:MTB) is a financial holding company that operates mainly through its banking subsidiary, M&T Bank. It provides banking products and services through a network of branches and ATMs primarily in the eastern US.
4. Marsh & McLennan Companies, Inc. (NYSE:MMC)
Number of Hedge Fund Holders: 56
Marsh & McLennan Companies, Inc. (NYSE:MMC) is one of the best financial stocks on Wall Street’s radar. On July 18, Jefferies increased its price target for Marsh & McLennan Companies, Inc. (NYSE:MMC) from $227 to $229 while keeping a “Hold” rating.
The investment firm noted that the company reported Q2 2025 results that met expectations, with results suggesting that the company is on track to achieve its current guidance. However, Marsh & McLennan Companies, Inc. (NYSE:MMC) did express caution due to macroeconomic uncertainty and softer market rates.
Despite this, Jefferies pointed out that the company is still confident it can achieve mid-single-digit organic growth and improve its margins.
The research firm also noted that Marsh & McLennan Companies, Inc.’s (NYSE:MMC) consulting business experienced some pressure from decreased project work. Jefferies analysts expect this pressure to persist somewhat in the short term.
Even with some pricing challenges, the Risk and Insurance Services (RIS) segment largely performed in line with expectations. Jefferies projects that the results for this division will likely remain similar in the second half of the year.
Marsh & McLennan Companies, Inc. (NYSE:MMC) is a global professional services firm that provides risk management, insurance brokerage, reinsurance services, talent management, investment advisory, and management consulting. The company serves customers in 130 countries around the world.
3. Truist Financial Corporation (NYSE:TFC)
Number of Hedge Fund Holders: 57
Truist Financial Corporation (NYSE:TFC) is one of the best financial stocks on Wall Street’s radar. On July 18, Raymond James reduced its price target for Truist Financial Corporation (NYSE:TFC) from $50 to $48 while keeping an “Outperform” rating.
The investment firm noted that Truist Financial Corporation (NYSE:TFC) shares are underperforming. Raymond James believes this reflects market concerns around near-term net interest margin/net interest income and the expected increase in investment banking fees in the second half of the year.
The firm now projects adjusted revenue growth for Truist Financial Corporation (NYSE:TFC) to be at the low end of the company’s own target range of 1.5% to 2.5%. This view reflects the uncertain business and economic environment.
However, Raymond James noted that if there is progress on deregulation and loan growth improves, Truist Financial Corporation (NYSE:TFC) could see stronger results.
The investment firm still believes there is a “modestly positive risk-reward skew” for Truist Financial Corporation (NYSE:TFC). Raymond James pointed to the company’s progress toward mid-teens return on tangible common equity, a slight improvement in the short-term outlook for credit, and expected positive operating leverage. All of this comes as Truist Financial Corporation (NYSE:TFC) trades at a discount compared to its peers.
Truist Financial Corporation (NYSE:TFC) is an American bank holding and financial services company. It specializes in consumer and small business banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending businesses.
2. Interactive Brokers Group, Inc. (NASDAQ:IBKR)
Number of Hedge Fund Holders: 67
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is one of the best financial stocks on Wall Street’s radar. On July 18, BofA Securities increased its price target for Interactive Brokers Group, Inc. (NASDAQ:IBKR) from $69 to $71 and kept a “Buy” rating.
This decision follows the company’s Q2 2025 results. Interactive Brokers Group, Inc. (NASDAQ:IBKR) reported adjusted earnings per share of $0.51 for the quarter, which surpassed both BofA’s forecast and consensus estimate. This beat was driven mainly by stronger-than-expected net interest income.
Interactive Brokers Group, Inc. (NASDAQ:IBKR) reported record commission revenues of $516 million for Q2 2025. For the same quarter, net interest income also reached a record $860 million, up 9% year-over-year, despite the lower interest rate environment.
The company’s total net revenue for the quarter was about $1.5 billion, which was also a new record. This performance was driven by strong demand across products and asset classes.
BofA Securities highlighted that Interactive Brokers Group, Inc. (NASDAQ:IBKR) is seeing strong activity from international clients who remain interested in US assets. The company’s presence in 160 global markets gives it a competitive advantage, allowing investors to easily trade between domestic and international assets.
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a financial services company that provides automated trade execution and custody of securities, commodities, foreign exchange, and forecast contracts. It serves individual investors, hedge funds, proprietary trading groups, and financial advisors.
1. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 102
The Charles Schwab Corporation (NYSE:SCHW) is one of the best financial stocks on Wall Street’s radar. On July 18, Raymond James increased its price target for The Charles Schwab Corporation (NYSE:SCHW) from $99 to $103 while keeping an “Outperform.”
This decision came after the company reported its second-quarter 2025 results.
According to Raymond James, The Charles Schwab Corporation (NYSE:SCHW) is expected to largely pay down its high-cost funding by the end of 2025. This could significantly improve the company’s net interest margin.
The investment firm also pointed out that recent high market volatility is driving trading volumes, which should help offset any possible net interest margin headwinds from Federal Reserve rate cuts later this year.
Raymond James analysts also noted solid growth trends in new assets and accounts at The Charles Schwab Corporation (NYSE:SCHW). Looking ahead, the firm expects to see significant growth in earnings per share for the company in 2025 and 2026.
The Charles Schwab Corporation (NYSE:SCHW) is an American multinational financial services company. It offers a full range of brokerage, banking, and financial advisory services through its operating subsidiaries.
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