In this article, we will look at the 10 Best Performing Financial Stocks So Far in 2025.
On September 16, Christina Minnis, global head of credit and asset finance at Goldman Sachs, joined CNBC for an interview. She highlighted that business feels strong; however, it needs a rate cut soon. She noted that the credit markets have improved a lot since July; moreover, high-yield and loan markets show higher volumes and tighter spreads. Borrowers are also coming to the market, which indicates that confidence is strong as well.
Minnis highlighted that the M&A activity is up, particularly large deals over $10 billion, which is driving more credit market volume. Moreover, the Sponsor activity is also picking up, which Minnis finds encouraging. She linked it to a potential easing cycle from the Fed, which is expected to lower the borrowing cost and encourage earnings. She believes that the easing cycle will allow companies to fund major infrastructure, energy transition, and tech investments.
Minnis acknowledges the risk that easing could overheat markets. However, she points to $4 trillion in assets held by sponsors and large unmet capital needs, especially in infrastructure, where trillions are required. She highlighted that investors are currently underweight in these areas, indicating room for sustained investment demand.
She concludes that the equity environment is constructive and adds to the overall positive momentum in the credit and capital markets.
With that, let’s take a look at the 10 best performing financial stocks so far in 2025.
Our Methodology
To curate the list of 10 best performing financial stocks so far in 2025, we used Finviz Stock Screener, Yahoo Finance, and Insider Monkey’s Q2 2025 database. Using the screener, we aggregated a list of financial stocks that have gained more than 30% on a year-to-date basis. Next, we ranked these stocks based on the number of hedge fund holders sourced from Insider Monkey’s database. Please note that the data was recorded on September 15.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Performing Financial Stocks So Far in 2025
10. NatWest Group plc (NYSE:NWG)
Year-To-Date Performance: 44.60%
Number of Hedge Fund Holders: 21
NatWest Group plc (NYSE:NWG) is one of the Best Performing Financial Stocks So Far in 2025. Wall Street has been bullish on NatWest Group plc (NYSE:NWG) since the company topped estimates in its fiscal second quarter of 2025. The company posted a revenue of $5.38 billion, up 14.25% year-over-year and ahead of expectations by $37.59 million. The EPS of $0.41 also stayed in line with the consensus.
Many analysts have expressed their bullish sentiment on the stock, and the stock price has surged around 9.6% since the release. On August 27, Benjamin Caven from Goldman Sachs reiterated a Buy rating on NatWest Group plc (NYSE:NWG) and raised the price target from 595p to 632p.
Later, on September 4, Nicolas Payen from Kepler Capital also reiterated a Buy rating on the stock with a price target of 600p. Most recently, on September 9, Sheel Shah from JP Morgan reiterated a Buy rating on the stock, while raising the price target from 610p to 700p.
NatWest Group plc (NYSE:NWG) is a UK-based bank providing personal, private, and business banking services primarily in England, Wales, and Northern Ireland.
9. The Toronto-Dominion Bank (NYSE:TD)
Year-To-Date Performance: 44.56%
Number of Hedge Fund Holders: 23
The Toronto-Dominion Bank (NYSE:TD) is one of the Best Performing Financial Stocks So Far in 2025. Wall Street has been bullish on The Toronto-Dominion Bank (NYSE:TD) since the company topped revenue and EPS estimates in its fiscal third quarter of 2025. The company posted a revenue of $10.22 billion, which was down 2.35% year-over-year but ahead of expectations by $357.41 million. In addition, the EPS of $1.60 also topped estimates by $0.14.
Several analysts have reiterated their bullish sentiment on the stock. On August 29, a day after the earnings release, Douglas Young from Desjardins reiterated a Buy rating on The Toronto-Dominion Bank (NYSE:TD) and raised the price target from C$107 to C$110.
More recently, on September 5, Paul Holden from CIBC also raised the price target on the stock from C$109 to C$112, while reiterating a Buy rating on the stock. The analyst believes that the consensus estimates for Canadian Banks remain conservative, thereby positioning the banks to outperform.
The Toronto-Dominion Bank (NYSE:TD) operates as a major North American bank providing a broad range of financial services across four main segments, including Canadian Personal and Commercial Banking, U.S. Retail Banking, Wealth Management and Insurance, and Wholesale Banking.
8. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Year-To-Date Performance: 116.55%
Number of Hedge Fund Holders: 27
Deutsche Bank Aktiengesellschaft (NYSE:DB) is one of the Best Performing Financial Stocks So Far in 2025. Deutsche Bank Aktiengesellschaft (NYSE:DB) reported delivering the highest second-quarter and first-half profits in fiscal 2025 since 2007. The first half profits before tax more than doubled to €5.3 billion, compared to €2.4 billion in the same period last year. Moreover, net profit also surged to €3.7 billion from €1.5 billion previously.
Wall Street has been bullish on Deutsche Bank Aktiengesellschaft (NYSE:DB) since the release, and the stock has gained more than 11%. On September 2, Giulia Miotto from Morgan Stanley reiterated a Buy rating on the stock, while raising the price target from $37.53 to $41.05. More recently, on September 11, Benjamin Toms from RBC Capital also reiterated a Buy rating on the stock with a price target of $39.87.
Deutsche Bank Aktiengesellschaft (NYSE:DB) is a global financial institution offering a wide range of banking and investment services.
7. Barclays PLC (NYSE:BCS)
Year-To-Date Performance: 57.81%
Number of Hedge Fund Holders: 28
Barclays PLC (NYSE:BCS) is one of the Best Performing Financial Stocks So Far in 2025. Wall Street has been bullish on Barclays PLC (NYSE:BCS) since the company topped revenue and EPS estimates for the fiscal second quarter of 2025. The company posted a revenue of $9.60 billion, up 19.13% year-over-year and ahead of expectations by $256.10 million. In addition, the EPS of $0.63 also topped the consensus by $0.03.
Management noted that they are progressing well on their three-year strategic plan aimed at delivering more stable returns for investors. At the mid-point, the bank has achieved over half of its targeted £30 billion growth in UK risk-weighted assets. It has also reached half of its income growth goal and realized two-thirds of its planned £2 billion in cost savings.
Several analysts have expressed their bullish sentiment since the release. On September 2, Morgan Stanley analyst Alvaro Serrano raised the firm’s price target from 400 GBp to 420 GBp, while keeping an Overweight rating on the stock. More recently, on September 9, JPMorgan also raised the firm’s price target on Barclays PLC (NYSE:BCS) from 420 GBp to 500 GBp, while keeping an Overweight rating on the stock.
Barclays PLC (NYSE:BCS) is a global financial services company offering a wide range of banking and financial products.
6. UBS Group AG (NYSE:UBS)
Year-To-Date Performance: 34.51%
Number of Hedge Fund Holders: 36
UBS Group AG (NYSE:UBS) is one of the Best Performing Financial Stocks So Far in 2025. On September 15, Antonio Reale from Bank of America Securities raised the firm’s price target on UBS Group AG (NYSE:UBS) from $39.03 to $44.07, while maintaining a Hold rating on the stock.
The analyst noted that the revenue of UBS Group AG (NYSE:UBS) is largely influenced by the market conditions, particularly its wealth management segment. Currently, the company benefits from the positive market trends in the United States and the APEC regions. Regardless, Reale remains cautious, noting that the company’s risk/reward profile remains balanced.
Moreover, the company is also undergoing significant cost reduction strategies, which the analyst expects will enhance operational leverage from 2026. Reale notes that while the market outlook is positive, UBS Group AG (NYSE:UBS) is expected to benefit from increased IPO activity in Asia. Still, risk remains as Swiss regulators’ capital requirements and the potential need for strategic asset sales create uncertainty.
UBS Group AG (NYSE:UBS) is a Swiss holding company focused on wealth management, asset management, and investment banking.
5. The Bank of New York Mellon Corporation (NYSE:BK)
Year-To-Date Performance: 37.55%
Number of Hedge Fund Holders: 55
The Bank of New York Mellon Corporation (NYSE:BK) is one of the Best Performing Financial Stocks So Far in 2025. On September 11, The Bank of New York Mellon Corporation (NYSE:BK) announced its 5-year partnership with Carnegie Mellon University to invest $10 million in advancing research on artificial intelligence.
Management noted that this collaboration will create a Bank of New York AI Lab, which will bring together CMU students, faculty, and BNY experts to develop new AI technologies and frameworks. These will focus on ensuring trust, governance, and accountability in mission-critical AI applications, especially in financial services.
Moreover, the collaboration will also leverage the university’s leading programs in computer science, AI, and business to push both theoretical and applied AI research. As part of this partnership, a dedicated space on CMU’s Pittsburgh campus will be established in the 2025–26 academic year to support research, education, and talent collaboration.
The Bank of New York Mellon Corporation (NYSE:BK) is a global financial services company that provides securities services, market and wealth services, and investment and wealth management to institutional and retail clients.
4. The Goldman Sachs Group, Inc. (NYSE:GS)
Year-To-Date Performance: 35.67%
Number of Hedge Fund Holders: 73
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the Best Performing Financial Stocks So Far in 2025. On September 4, Betsy Graseck of Morgan Stanley maintained a Hold rating on The Goldman Sachs Group, Inc. (NYSE:GS) with a price target of $706.
The analyst noted the company’s recent partnership with T. Rowe Price to improve distribution and gain more access to private market investments. While the analyst views this as a positive sign, however, she believes that the impact of this partnership will materialize over the long term, and the products are expected to hit the market by mid-2026.
Moreover, while The Goldman Sachs Group, Inc. (NYSE:GS) plans to invest up to $1 billion in T. Rowe Price’s common stock. Graseck notes that this amount is small relative to the company’s size; therefore, it is not expected to significantly improve The Goldman Sachs Group, Inc. (NYSE:GS)’s position.
The Goldman Sachs Group, Inc. (NYSE:GS) is a global financial institution serving corporations, governments, and individuals.
3. Robinhood Markets, Inc. (NASDAQ:HOOD)
Year-To-Date Performance: 191.66%
Number of Hedge Fund Holders: 85
Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the Best Performing Financial Stocks So Far in 2025. On September 12, Brett Knoblauch from Cantor Fitzgerald raised the firm’s price target on Robinhood Markets, Inc. (NASDAQ:HOOD) from $128 to $130, while reiterating a Buy rating on the stock.
The bullish sentiment comes after the company released its operating data for August 2025. Management noted that the funded customers reached 26.7 million, down slightly from July 2025 but up 2.4 million from the previous year. The month-over-month decrease was due to the removal of 80,000 low-balance accounts due to regulatory escheatment.
Moreover, total platform assets reached $304 billion, up 2 % from the past month and more than 112% year-over-year. Net deposits for the month were $4.8 billion, marking a 19% annualized growth rate compared to July’s assets. Notably, margin balances hit $12.5 billion, rising 10% from July and doubling since last year.
Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform that provides easy access to investing and trading for all users.
2. Nu Holdings Ltd. (NYSE:NU)
Year-To-Date Performance: 47.60%
Number of Hedge Fund Holders: 97
Nu Holdings Ltd. (NYSE:NU) is one of the Best Performing Financial Stocks So Far in 2025. On September 10, Citi analyst Gustavo Schroden reiterated a Buy rating on Nu Holdings Ltd. (NYSE:NU) with a price target of $18.
The analyst noted that the company has shown strong growth prospects in Mexico since its launch of operations in Q4 2022. The company has reported a rapid increase in deposits and credits, gaining meaningful traction with customers in the Mexican market.
Schroden elaborated that the Mexican consumer market is large, making it an attractive opportunity. He added that Nu Holdings Ltd. (NYSE:NU )’s expansion strategy in Mexico is similar to the strategy it used in Brazil, which adds credibility to the company’s prospects.
Nu Holdings Ltd. (NYSE:NU) is a Brazil-based company providing digital banking services. It offers customers products for spending, saving, investing, borrowing, and protecting their finances.
1. Citigroup Inc. (NYSE:C)
Year-To-Date Performance: 42.18%
Number of Hedge Fund Holders: 102
Citigroup Inc. (NYSE:C) is one of the Best Performing Financial Stocks So Far in 2025. On September 9, Citigroup Inc.’s (NYSE:C) Citi Investor Services announced the launch of new FiX API connectivity between its Advanced Citi ETF System and Bloomberg’s BSKT service.
Management noted that, building upon the earlier integration of ACES and BSKT for fixed-income ETF basket negotiation, this update automates ETF creation and redemption for authorized participants.
FIX is a global protocol for real-time securities transaction data exchange. With this integration, authorized participants will no longer need to build their own FIX engines or order management systems to connect to Citi. Instead, they get a simplified, efficient way to handle ETF orders and negotiate baskets through Bloomberg’s BSKT, reducing operational complexity.
The new solution also supports large order volumes, which is important as ETF order flow grows.
Citigroup Inc. (NYSE:C) is a global financial services company offering banking, markets, wealth management, and treasury solutions.
While we acknowledge the potential of C to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than C and that has 100x upside potential, check out our report about this cheapest AI stock.
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