As 2025 unfolds, the banking and capital markets sector is entering a promising phase that calls for a more proactive and strategic growth agenda. Favorable macroeconomic indicators, such as a growing US economy, declining benchmark interest rates, consistent loan demand, and rising trading volumes, have created a strong foundation for expansion.
According to PwC, the US bank net interest income is projected to rise by 5.7% year-over-year, a notable improvement compared to the stagnation of the prior year. This financial momentum offers banks an opportunity to reassess and accelerate their growth strategies, including entering new markets, pursuing acquisitions, or expanding relationships with existing clients.
Political developments are also shaping a more conducive environment for financial institutions. The Republican victory in the 2024 US elections has raised expectations for deregulation and pro-growth economic policies. If these reforms materialize, they may reduce compliance burdens and encourage capital raising, particularly through public markets. However, firms must be prepared to respond to increased demand.
Looking ahead, while 2025 is expected to bring change, a recession in the US appears unlikely. Assuming this outlook holds, it is a good time for banks and capital markets firms to take action. Institutions that leverage high-quality data, skilled personnel, and modern tech will be better positioned to lead in an increasingly digital and dynamic financial landscape.
With that in mind, let’s take a look at the 10 best Goldman Sachs stocks to buy that are also on Wall Street’s radar.
A successful investor gazing out of a large bank building, the city skyline visible in the background.
Our Methodology
We analyzed the Q1 2025 portfolio of Goldman Sachs and identified 10 bank stocks that received coverage from Wall Street analysts and mainstream media outlets in June 2025. These bank stocks were also favored by top hedge funds in the first quarter of 2025, as per Insider Monkey’s Q1 2025 database.
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. The Bank of Nova Scotia (NYSE:BNS)
Goldman Sachs’ Stake Value: $475,475,313
Number of Hedge Fund Holders: 19
The Bank of Nova Scotia (NYSE:BNS) is one of the best Goldman Sachs bank stocks. On June 9, Fitch Ratings maintained the Bank of Nova Scotia’s long-term and short-term issuer default ratings at ‘AA-’ and ‘F1+’, respectively, maintaining a stable outlook.
These ratings indicate the constraints in Scotiabank’s operating environment, reflected by its average operating environment score of ‘aa-’. This score factors in the risks and revenue from primary end markets, such as Canada, the United States, Chile, Mexico, Peru, and Colombia.
BNS maintains a leading retail banking position in Canada. Scotiabank is working on a five-year plan launched in December 2023 to grow its core businesses, strengthen relationships with clients, and improve how the bank operates. As part of this plan, BNS bought a 14.9% stake in KeyCorp (NYSE:KEY) and simplified its operations in Latin America by exiting Colombia, Costa Rica, and Panama.
Fitch observed that, given its significant presence in Mexico, BNS could feel more of an impact from new US tariffs than other Canadian banks. Broader economic challenges in Mexico and Canada could also put pressure on the quality of its loan book. In Q2 2025, the percentage of impaired loans rose to 90bps, up from 83bps the year before, mostly due to weaker performance in Canadian retail and commercial lending. Credit quality has been a consistent challenge for BNS compared to other domestic banks, again tied to its international exposure.
Revenue at BNS has improved due to better loan management and stronger margins, but near-term profit pressure remains as the bank continues to realign its operations. To guard against tariff-related risks, it has increased loan-loss provisions. Capital levels are solid, with a CET1 ratio of 13.2%, providing a strong buffer in uncertain conditions.
Fitch does not expect a ratings upgrade soon. A more optimistic outlook would require lower exposure to emerging markets and reduced risk from Canadian household debt and housing.
9. UBS Group AG (NYSE:UBS)
Goldman Sachs’ Stake Value: $482,643,005
Number of Hedge Fund Holders: 33
UBS Group AG (NYSE:UBS) is one of the best Goldman Sachs bank stocks. On June 9, UBS maintained a Neutral rating on UBS, with a price target of CHF26.90. Analysts talked about the Swiss Federal Council’s newly announced proposals, introduced following the Credit Suisse fallout and a comprehensive review of Switzerland’s ‘too big to fail’ regulatory framework.
The proposals introduce an incremental CET1 capital requirement of $26 billion, landing at the upper end of market expectations. However, the outlined transition period of six to eight years post-implementation provides UBS with a meaningful runway to meet the requirement properly.
Citi analysts noted that the extended transition timeline alleviates near-term uncertainty. In their view, UBS is well-positioned to address the incremental capital requirements without disrupting its capital return strategy, including dividends and share buybacks.
However, analysts cautioned that the proposals remain subject to consultation and legislative review, introducing potential for revisions. They also highlighted concerns around UBS’s relative earnings momentum, which continues to trail peers due to sustained weakness in net interest income.
UBS Group AG (NYSE:UBS) is a global financial services firm offering a wide range of solutions for individuals, businesses, and institutions, including wealth management, personal and corporate banking, asset management, and investment banking.
8. Fidelity National Information Services, Inc. (NYSE:FIS)
Goldman Sachs’ Stake Value: $796,297,541
Number of Hedge Fund Holders: 56
Fidelity National Information Services, Inc. (NYSE:FIS) is one of the best Goldman Sachs bank stocks. On June 12, FIS was named an Overall Leader in Javelin Strategy & Research’s latest Digital Issuance Provider Scorecard. This comes on top of a series of recent industry recognitions and reinforces the company’s strong position in providing innovative payment solutions that improve speed and efficiency.
Javelin’s evaluation considered 8 digital card issuance platforms using 25 different criteria across three main categories. FIS was also recognized as a leader in both Features & Functionality and Technology, highlighting Fidelity National’s ongoing focus on innovation across the payments ecosystem.
Kim Bynan, head of Issuing Solutions at FIS, commented:
“As Gen Z and Gen Alpha take on greater importance for card issuers, it’s imperative that we provide them with an outstanding digital user experience,”
FIS’s Digital Card Issuance solution is built to simplify the card issuance process while improving the overall customer experience. With near-instant digital delivery to mobile wallets, customers can access their debit cards and funds almost immediately. The platform also uses advanced authentication tools to solidify security and protect against fraud. Whether it is for new customers or replacement cards, the system is built to work quickly and integrate smoothly with existing infrastructure.
FIS stood out in the Scorecard for its wide-ranging capabilities, including support for a variety of mobile wallets and card networks.
Fidelity National Information Services, Inc. (NYSE:FIS) is a global fintech company that provides services including digital banking, digital payments, trading, risk management, and wealth management tools.
7. Morgan Stanley (NYSE:MS)
Goldman Sachs’ Stake Value: $1,934,098,721
Number of Hedge Fund Holders: 68
Morgan Stanley (NYSE:MS) is one of the best Goldman Sachs bank stocks. On June 10, Morgan Stanley CEO Ted Pick informed investors that he is optimistic about a strong end to the quarter, noting that business momentum has picked up after a brief slowdown in April due to US tariff news.
CEO Ted Pick adopted an upbeat tone at the bank’s annual financial conference, saying he is feeling “super pumped” about the company’s business outlook. Deal activity is picking back up, and Pick said equity capital markets are starting to reopen. M&A conversations have remained steady, even accelerating in some areas.
Morgan Stanley is presently heading multiple high-profile IPOs, including fintech company Chime, expected to raise up to $832 million this week. It also helped bring Hinge Health and ad-tech firm MNTN public in May. On the M&A side, the bank advised TJC on its $5 billion sale of Silvus Technologies to Motorola and supported AT&T’s $5.75 billion acquisition of Lumen’s fiber business. The firm also worked with Toyota’s special board committee on a potential go-private proposal.
Pick said changes to banking regulations would be welcome, as they could lead to potential acquisitions. He has remained one of the more optimistic voices on Wall Street, saying back in April that he was “cautiously optimistic” the US would avoid a recession.
Morgan Stanley (NYSE:MS) is a global financial services firm offering investment banking, wealth management, and asset management to clients worldwide.
6. Wells Fargo & Company (NYSE:WFC)
Goldman Sachs’ Stake Value: $1,402,974,037
Number of Hedge Fund Holders: 88
Wells Fargo & Company (NYSE:WFC) is one of the best Goldman Sachs bank stocks. On June 10, Wells Fargo Chief Financial Officer Mike Santomassimo commented that the American consumer loan growth will potentially be tepid for the rest of 2025 and could likely decline. On the commercial side, growth is harder to forecast due to ongoing uncertainty around US tariffs.
This comes shortly after the Federal Reserve lifted a $1.95 trillion asset cap that had restricted WFC for seven years following its fake accounts scandal. With that cap now removed, CEO Charlie Scharf says Wells Fargo is focused on expanding across credit cards, investment banking, and wealth management. Industry leaders like JPMorgan’s Jamie Dimon praised WFC’s progress and called the lengthy penalty “grossly unfair”.
Santomassimo added that investment banking is starting to pick up, with the firm now landing deals it would not have been part of before. Even though dealmaking has been slow amid economic uncertainty, banks remain optimistic.
Wells Fargo & Company (NYSE:WFC) is a US financial services company providing banking, lending, investment, and wealth management services.
5. Capital One Financial Corporation (NYSE:COF)
Goldman Sachs’ Stake Value: $634,197,228
Number of Hedge Fund Holders: 93
Capital One Financial Corporation (NYSE:COF) is one of the best Goldman Sachs bank stocks. On June 10, at the Morgan Stanley US Financials Conference 2025, Capital One CEO Rich Fairbank discussed the Discover merger as a transformative opportunity to expand Capital One’s scale in credit cards, strengthen its position in payments, and accelerate its progress toward building a modern national bank.
Discover will operate as a featured product under the Capital One umbrella, with a full migration to Capital One’s cloud-native platforms. This is expected to improve efficiency, enable faster innovation, and drive meaningful synergies across both networks. Management highlighted that Discover’s strong brand equity and customer base will help deepen Capital One’s reach across the consumer landscape.
Capital One remains cautiously optimistic despite headwinds in auto lending, supported by improving credit metrics and stable consumer health. The bank is focused on maintaining a long-term CET1 target of 11% and is preparing for more active capital returns pending CCAR results. Its growth strategy centers on generative AI integration, operational automation, and a forward-looking approach to M&A, positioning itself as a modern, tech-centered financial institution.
Capital One Financial Corporation (NYSE:COF) is a financial services company that offers credit cards, banking, and lending products to individuals, small businesses, and commercial clients in the US, Canada, and the UK.
4. Citigroup Inc. (NYSE:C)
Goldman Sachs’ Stake Value: $606,779,661
Number of Hedge Fund Holders: 96
Citigroup Inc. (NYSE:C) is one of the best Goldman Sachs bank stocks. Citigroup is setting aside more money to prepare for the possibility that some customers may have trouble repaying their loans. Speaking at a Morgan Stanley conference, Citi’s Head of Banking, Vis Raghavan, said credit costs will likely rise by a few hundred million dollars this quarter, more than analysts had expected.
The move highlights Citi’s dynamic provisioning strategy and its balance sheet discipline. While delinquencies have edged higher across the industry, particularly in auto finance, Citi’s exposure remains relatively low, driven by a retail base with robust credit profiles. Raghavan reaffirmed confidence in the firm’s overall credit quality, highlighting that currently padded reserves are precautionary.
This risk-aware stance comes in the wake of high interest rates and inflation continuing to strain some consumer segments. Citi joins peers in reinforcing credit buffers while maintaining a cautiously optimistic view on the broader health of the US consumer. CEO Jane Fraser previously mentioned that credit losses, though increasing, remain within manageable thresholds consistent with a slowly normalizing credit cycle.
Citigroup Inc. (NYSE:C) is a global financial services firm that provides banking, investment, and wealth management solutions to individuals, businesses, and governments around the world.
3. The Charles Schwab Corporation (NYSE:SCHW)
Goldman Sachs’ Stake Value: $614,707,696
Number of Hedge Fund Holders: 102
The Charles Schwab Corporation (NYSE:SCHW) is one of the best Goldman Sachs bank stocks. Schwab Asset Management, the investment arm of The Charles Schwab Corporation and the fifth-largest ETF provider, announced that it is lowering the fees for four of its equity index ETFs, starting June 10, 2025. With these changes, all of Schwab’s market-cap-weighted equity and bond index ETFs will now have fees under 0.10%.
In addition, SCHW is planning forward share splits for six of its mutual funds, including the Schwab 1000 Index Fund (SNXFX). This fund, launched nearly 35 years ago, will return to a share price closer to its original $10 value. A forward share split increases the number of shares while lowering the price per share, but it does not change the total value of an investor’s holdings or trigger taxes. These splits will take place on August 15, 2025, for shareholders listed by August 13.
John Sturiale, Schwab’s Head of Product Management and Innovation, said this move reflects the company’s ongoing effort to make investing easier and more affordable. It follows Schwab’s recent launch of National Investing Day on May 1, 2025, which aims to encourage long-term investing and help more people take charge of their financial futures.
The Charles Schwab Corporation (NYSE:SCHW) is an American financial services company offering wealth management, brokerage, banking, asset management, custody, and advisory services.
2. Bank of America Corporation (NYSE:BAC)
Goldman Sachs’ Stake Value: $1,425,366,835
Number of Hedge Fund Holders: 117
Bank of America Corporation (NYSE:BAC) is one of the best Goldman Sachs bank stocks. BAC expects its trading revenue to grow by a mid-single digit percentage this quarter, its 13th consecutive increase, according to CEO Brian Moynihan. In contrast, investment banking fees are forecasted to fall to nearly $1.2 billion from $1.6 billion a year ago, though Moynihan remains optimistic about long-term prospects and ongoing client engagement.
Despite a slowdown in dealmaking due to geopolitical tensions and market uncertainty, trading activity continues to benefit from volatility. BAC CEO reaffirmed guidance for net interest income to grow to $15.5-$15.7 billion by Q4 2025, up from $14.6 billion in Q1, driven by higher interest payments and solid consumer spending. Q2 earnings per share are expected to rise to $0.90, up from $0.83 a year ago.
Moynihan noted that credit quality remains strong as consumers continue to meet obligations, although small businesses are more exposed to tariff-related uncertainty. Separately, the Bank of America is preparing for potential developments in digital assets, including stablecoins, and is evaluating the long-term viability of these products in light of emerging regulatory frameworks.
Bank of America Corporation (NYSE:BAC) is a financial institution offering banking, lending, investing, and wealth management services, catering to individuals, businesses, and governments with solutions ranging from checking accounts to investment banking and global markets support.
1. JPMorgan Chase & Co. (NYSE:JPM)
Goldman Sachs’ Stake Value: $4,879,502,943
Number of Hedge Fund Holders: 129
JPMorgan Chase & Co. (NYSE:JPM) is one of the best Goldman Sachs bank stocks. On June 11, TD Cowen reiterated a Buy rating on JPM with a $315 price target. The firm observed that JPMorgan maintains a record of “impressive organic growth momentum across its dominant businesses,” indicated by its solid 41.4% return over last year and 13.32% YTD performance.
TD Cowen identified JPMorgan’s investments in artificial intelligence as a significant catalyst for long-term, exponential profitability. The firm also pointed to the bank’s growing presence in private credit as a promising avenue for expansion, noting JPMorgan’s financial resilience demonstrated by 55 consecutive years of maintaining its dividend.
The firm highlighted Jamie Dimon’s leadership, emphasizing that his presentation at the investor conference reinforced their view of him as one of the most distinguished bankers of his generation, which led to its bullish outlook on JPMorgan.
JPMorgan Chase & Co. (NYSE:JPM) is a global financial institution that specializes in offering banking, investment, and wealth management services to individuals, businesses, and governments worldwide.
While we acknowledge the potential of JPM 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 JPM and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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