10 Most Undervalued S&P 500 Stocks to Buy Now

2. Bank of America Corp. (NYSE:BAC)

Forward P/E Ratio as of March 14: 10.72

Number of Hedge Fund Holders: 113

Bank of America Corp. (NYSE:BAC) is a financial institution that offers products and services across four segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. It serves individuals, businesses, and institutions worldwide.

The company’s Consumer Banking division generated ~$11 billion in 2024 revenue, which made up 40% of the company’s total earnings. Q4 2024 revenue alone was $10.6 billion. The segment added over 200,000 net new checking accounts, marking 6 years of growth. The company’s digital engagement was strong, with over 14 billion logins and digital sales exceeding 60% in Q4. The AI-powered “Erica” platform surpassed 2.5 billion interactions.

This year, the company laid off investment banking staff, which included junior bankers, analysts, and associates, following workforce reductions of about 1% after performance reviews. These cuts are part of annual talent management. Bank of America Corp. (NYSE:BAC) made the job cuts to reduce costs and align staffing with current market conditions in the investment banking sector.

Diamond Hill Large Cap Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q2 2024 investor letter:

“Other top contributors in Q2 included Bank of America Corporation (NYSE:BAC) and Extra Space Storage. Shares of financial services company Bank of America rose in the quarter as it looks increasingly likely net interest income will inflect and begin growing again in 2024’s back half and into 2025.”