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.
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