Bank stocks, like Citi and Goldman Sachs, are surging in 2025 despite a softer monetary stance. Citi is up nearly 60% YTD, while Goldman shows strong results but faces valuation concerns. Wells Fargo could offer the most upside potential as a late-cycle performer. The Financial Select Sector SPDR ETF hit an all-time high.

Citigroup Inc. has seen a remarkable uptrend, up nearly 60% YTD. J.P. Morgan recently upgraded the stock to Overweight, citing its ability to benefit from a solid economic backdrop and strong market activity. Improvements in Citi’s restructuring efforts are also boosting investor confidence.

Goldman Sachs Group Inc. has had an impressive year, with shares up about 52% YTD. The stock began December with seven straight sessions of gains. Operational performance has been strong, but valuation concerns are growing. Analysts caution that the stock is approaching fair value after its recent rally.

Wells Fargo & Co has seen a bumpier path this year but could be the late bloomer among bank stocks. Despite lagging behind in 2025, the stock has reached all-time highs. Evercore ISI reiterated its Outperform rating and raised the price target, suggesting significant upside potential in 2026 if operational challenges ease.

Read more at Yahoo Finance: These 3 Banks Are Rallying Into Year-End, But Will It Continue?