Sectors & IndustriesFinancial ServicesBanks - Diversified

Best Diversified Bank Stocks to Buy Now (2025)

Top diversified bank stocks in 2025 ranked by overall Due Diligence Score. See the best diversified bank stocks to buy now, according to analyst forecasts for the banks - diversified industry.

According to Due Diligence Score, the 3 best diversified bank stocks to buy right now are:

East West Bancorp (NASDAQ:EWBC) is the top diversified bank stock with a Due Diligence Score of 45, which is 10 points higher than the diversified bank industry average of 35. It passed 16 out of 38 due diligence checks and has strong fundamentals. East West Bancorp has seen its stock return 28.38% over the past year, overperforming other diversified bank stocks by 5 percentage points.

East West Bancorp has an average 1 year price target of $111.83, an upside of 19.59% from East West Bancorp's current stock price of $93.51.

East West Bancorp stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 12 analysts covering East West Bancorp, 66.67% have issued a Strong Buy rating, 16.67% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Natwest Group (NYSE:NWG) is the second best diversified bank stock with a Due Diligence Score of 41, which is 6 points higher than the diversified bank industry average of 35. It passed 14 out of 38 due diligence checks and has strong fundamentals. Natwest Group has seen its stock return 66.79% over the past year, overperforming other diversified bank stocks by 43 percentage points.

Bank Of Nt Butterfield & Son (NYSE:NTB) is the third best diversified bank stock with a Due Diligence Score of 41, which is 6 points higher than the diversified bank industry average of 35. It passed 13 out of 38 due diligence checks and has strong fundamentals. Bank Of Nt Butterfield & Son has seen its stock return 12.34% over the past year, underperforming other diversified bank stocks by -11 percentage points.

Bank Of Nt Butterfield & Son has an average 1 year price target of $42.00, an upside of 19.49% from Bank Of Nt Butterfield & Son's current stock price of $35.15.

Bank Of Nt Butterfield & Son stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Bank Of Nt Butterfield & Son, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 15 diversified bank stocks that have issued dividends in the past year, the 3 diversified bank stocks with the highest dividend yields are:

Hsbc Holdings (NYSE:HSBC) has an annual dividend yield of 8.3%, which is 4 percentage points higher than the diversified bank industry average of 4.01%. Hsbc Holdings's dividend payout is not stable, having dropped more than 10% ten times in the last 10 years. Hsbc Holdings's dividend has not shown consistent growth over the last 10 years.

Hsbc Holdings's dividend payout ratio of 46.1% indicates that its high dividend yield is sustainable for the long-term.

Bank Of Nova Scotia (NYSE:BNS) has an annual dividend yield of 6.2%, which is 2 percentage points higher than the diversified bank industry average of 4.01%. Bank Of Nova Scotia's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Bank Of Nova Scotia's dividend has shown consistent growth over the last 10 years.

Bank Of Nova Scotia's dividend payout ratio of 93.8% indicates that its high dividend yield might not be sustainable for the long-term.

Bank Of Montreal (NYSE:BMO) has an annual dividend yield of 5.88%, which is 2 percentage points higher than the diversified bank industry average of 4.01%. Bank Of Montreal's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Bank Of Montreal's dividend has shown consistent growth over the last 10 years.

Bank Of Montreal's dividend payout ratio of 84.3% indicates that its high dividend yield is sustainable for the long-term.

Diversified bank stocks were down -1.71% in the last day, and down -1.05% over the last week.

We couldn't find a catalyst for why diversified bank stocks are down.

Based on WallStreetZen's Valuation Score, the 3 most undervalued diversified bank stocks right now are:

Barclays (NYSE:BCS) is the most undervalued diversified bank stock based on WallStreetZen's Valuation Score. Barclays has a valuation score of 71, which is 31 points higher than the diversified bank industry average of 40. It passed 5 out of 7 valuation due diligence checks.

Barclays's stock has gained 60.03% in the past year. It has overperformed other stocks in the diversified bank industry by 37 percentage points.

Toronto Dominion Bank (NYSE:TD) is the second most undervalued diversified bank stock based on WallStreetZen's Valuation Score. Toronto Dominion Bank has a valuation score of 71, which is 31 points higher than the diversified bank industry average of 40. It passed 5 out of 7 valuation due diligence checks.

Toronto Dominion Bank's stock has dropped -11.5% in the past year. It has underperformed other stocks in the diversified bank industry by -35 percentage points.

Natwest Group (NYSE:NWG) is the third most undervalued diversified bank stock based on WallStreetZen's Valuation Score. Natwest Group has a valuation score of 57, which is 17 points higher than the diversified bank industry average of 40. It passed 4 out of 7 valuation due diligence checks.

Natwest Group's stock has gained 66.79% in the past year. It has overperformed other stocks in the diversified bank industry by 43 percentage points.