Sectors & IndustriesFinancial ServicesBanks - Diversified

Best Diversified Bank Stocks to Buy Now (2025)

Top diversified bank stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best diversified bank stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best diversified bank stocks to buy right now are:

Barclays (NYSE:BCS) is the #1 top diversified bank stock out of 16 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Barclays (NYSE:BCS) is: Value: C, Growth: C, Momentum: A, Sentiment: B, Safety: C, Financials: C, and AI: B.

Barclays (NYSE:BCS) has a Due Diligence Score of 48, which is 16 points higher than the diversified bank industry average of 32.

BCS passed 18 out of 38 due diligence checks and has strong fundamentals. Barclays has seen its stock return 59.49% over the past year, overperforming other diversified bank stocks by 26 percentage points.

Natwest Group (NYSE:NWG) is the #2 top diversified bank stock out of 16 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Natwest Group (NYSE:NWG) is: Value: C, Growth: C, Momentum: A, Sentiment: B, Safety: C, Financials: C, and AI: A.

Natwest Group (NYSE:NWG) has a Due Diligence Score of 45, which is 13 points higher than the diversified bank industry average of 32.

NWG passed 16 out of 38 due diligence checks and has strong fundamentals. Natwest Group has seen its stock return 55.63% over the past year, overperforming other diversified bank stocks by 22 percentage points.

Hsbc Holdings (NYSE:HSBC) is the #3 top diversified bank stock out of 16 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Hsbc Holdings (NYSE:HSBC) is: Value: C, Growth: D, Momentum: A, Sentiment: A, Safety: C, Financials: C, and AI: B.

Hsbc Holdings (NYSE:HSBC) has a Due Diligence Score of 38, which is 6 points higher than the diversified bank industry average of 32.

HSBC passed 13 out of 38 due diligence checks and has average fundamentals. Hsbc Holdings has seen its stock return 42.1% over the past year, overperforming other diversified bank stocks by 8 percentage points.

Out of 7 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 5.36%, which is 3 percentage points higher than the diversified bank industry average of 2.48%. 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 65.5% indicates that its high dividend yield is sustainable for the long-term.

Natwest Group (NYSE:NWG) has an annual dividend yield of 4.06%, which is 2 percentage points higher than the diversified bank industry average of 2.48%. Natwest Group's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Natwest Group's dividend has shown consistent growth over the last 10 years.

Natwest Group's dividend payout ratio of 34.8% indicates that its high dividend yield is sustainable for the long-term.

Barclays (NYSE:BCS) has an annual dividend yield of 2.29%, which is the same as the diversified bank industry average of 2.48%. Barclays's dividend payout is not stable, having dropped more than 10% seven times in the last 10 years. Barclays's dividend has shown consistent growth over the last 10 years.

Barclays's dividend payout ratio of 20.6% indicates that its dividend yield is sustainable for the long-term.

Diversified bank stocks were down -0.94% in the last day, and down -0.24% over the last week. Bank Of America was the among the top losers in the banks - diversified industry, dropping -3.1% yesterday.

Bank of America shares are trading lower after HSBC downgraded the stock from Buy to Hold, despite raising the price target from $47 to $51.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued diversified bank stocks right now are:

Bank Of Nt Butterfield & Son (NYSE:NTB) is the most undervalued diversified bank stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Bank Of Nt Butterfield & Son has a valuation score of 29, which is -12 points higher than the diversified bank industry average of 41. It passed 2 out of 7 valuation due diligence checks.

Bank Of Nt Butterfield & Son's stock has gained 34.1% in the past year. It has performed in line with other stocks in the diversified bank industry.

Hsbc Holdings (NYSE:HSBC) is the second most undervalued diversified bank stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Hsbc Holdings has a valuation score of 43, which is 2 points higher than the diversified bank industry average of 41. It passed 3 out of 7 valuation due diligence checks.

Hsbc Holdings's stock has gained 42.1% in the past year. It has overperformed other stocks in the diversified bank industry by 8 percentage points.

Natwest Group (NYSE:NWG) is the third most undervalued diversified bank stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Natwest Group has a valuation score of 43, which is 2 points higher than the diversified bank industry average of 41. It passed 3 out of 7 valuation due diligence checks.

Natwest Group's stock has gained 55.63% in the past year. It has overperformed other stocks in the diversified bank industry by 22 percentage points.

44.44% of diversified bank stocks rated by analysts are a strong buy right now. On average, analysts expect diversified bank stocks to rise by 14.85% over the next year.

0% of diversified bank stocks have a Zen Rating of A (Strong Buy), 6.25% of diversified bank stocks are rated B (Buy), 37.5% are rated C (Hold), 56.25% are rated D (Sell), and 0% are rated F (Strong Sell).