11 Best Undervalued Stocks to Invest in Now

In this article, we will look at the 11 Best Undervalued Stocks to Invest in Now.

How Will Tariffs Affect the Market?

On March 5th, BBC reported that the US stock market had fallen after the tariffs sparked trade war fear. The recent imposition of tariffs by President Donald Trump on imports from Canada, Mexico, and China has sparked significant concerns about a potential trade war. The United States has imposed a 25% tariff on most imports from these countries, with Canadian energy products facing a 10% tariff. On the other hand, tariffs on Chinese imports have been increased from 10% to 20%. As a result, Prime Minister of Canada, Justin Trudeau announced immediate tariffs on $30 billion worth of US goods, with plans for additional tariffs on $125 billion in goods over the next three weeks. Moreover, China imposed tariffs ranging from 10% to 15% on various US agricultural imports, such as chicken, pork, and soybeans. The tariffs have raised fears of inflation and a broader trade conflict, leading to a decline in US and global stock markets. As a result, the S&P 500 experienced a significant drop, and European markets also closed lower.

Today, Richard Fisher, former Dallas Fed president, appeared on a CNBC interview to talk about the recent tariffs and their impact on the market. Fisher stated that a tariff is a cost factor that goes into producing and distributing a product, making it a form of tax. Business operators of all sizes have to figure out a way to protect their margins against the impact. On the other hand, the Federal Reserve has to gauge the amount of revenue it would generate from these tariffs considering it is slowing down the economy and can cause inflation as the companies will have to raise prices to maintain their margins. Moreover, Richard Fisher noted that such tariffs take a long to be digested, as businesses don’t change something overnight. The only way for companies to maintain their margins without increasing prices is by increasing productivity, which again does not happen overnight and takes time.

While talking about how the Fed might react to the tariffs, Fisher mentioned that it is a little too early to guess. The Fed is bringing inflation down and we are getting closer to the 2% target, however, at the same time tariff increases the cost of doing business, which might slow down the economy and tickle up inflation. To conclude Fisher noted that tariffs won’t be digested quickly and will take time.

With that let’s take a look at the 11 best undervalued stocks to invest in now.

Our Methodology

For this article, we used the Finviz stock screener, Yahoo Finance, and Seeking Alpha. Using the screener we aggregated a list of stocks trading below the forward P/E of 15 and earnings growth expectations this year. Next, we cross-checked the Forward P/E from Seeking Alpha and Earnings growth from Yahoo Finance. Lastly, after sorting our list by market capitalization, we ranked the stocks in ascending order of the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 database of hedge funds.

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).

11 Best Undervalued Stocks to Invest in Now

11. Royal Bank of Canada (NYSE:RY)

Forward P/E Ratio: 12.71

Earnings Growth This Year: 11.22% 

Number of Hedge Fund Holders: 31

Royal Bank of Canada (NYSE:RY) is a Canadian financial company that operates by providing banking services for businesses, individuals, and governments. Its services include everyday banking including, checking accounts, loans, and investments to individuals and businesses. Moreover, the bank also helps in wealth management, investment advice, and trust services for people in Canada, the US, and the Caribbean.

During the fiscal first quarter of 2025, the bank reported strong financial performance. It grew its net income by 43% year-over-year to reach a record high of $5.1 billion. Royal Bank of Canada (NYSE:RY) was able to maintain an ROE of 16.8%, reflecting profitability. Moreover, the company’s net interest income also grew by 26% year-over-year, driven by strong deposit growth in Personal Banking and loan growth in Commercial Banking.

On February 26, Matthew Lee from Canaccord Genuity maintained a Buy rating on the stock with a price target of C$191. Lee noted that Royal Bank of Canada (NYSE:RY) has exceeded market and internal estimations in its adjusted earnings per share. Moreover, the revenue and expense ratio also came above expectations thereby justifying a Buy rating on the stock. It is one of the best-undervalued stocks to invest in now.

10. Novartis AG (NYSE:NVS)

Forward P/E Ratio: 10.27 

Earnings Growth This Year: 7.93% 

Number of Hedge Fund Holders: 33

Novartis AG (NYSE:NVS) is a Swiss pharmaceutical company that focuses on creating and selling medicines to treat various health conditions. The company develops both new, patented medicines and generic versions of existing drugs. It develops medicines for various conditions including, immunology, dermatology, cancer, cardiovascular diseases, and more.

On February 20, Florent Cespedes from Bernstein maintained a Buy rating on the stock with a price target of CHF115. Recently, Novartis AG (NYSE:NVS) announced a deal to repurchase Anthos Therapeutics for up to $3.1 billion. This acquisition allows the company to regain control over Abelacimab, a promising drug for preventing blood clots and strokes.

During the fiscal fourth quarter of 2024, the company reported a significant increase in net income during Q4 2024, exceeding Wall Street forecasts. It grew its net income by 26% to $3.93 billion. Moreover, the company also achieved a record-high free cash flow of $16.3 billion, marking a 24% increase. This demonstrates the company’s financial strength and ability to generate substantial cash from its operations. It is one of the best-undervalued stocks to invest in now.

Aristotle Capital International Equity Strategy stated the following regarding Novartis AG (NYSE:NVS) in its Q2 2024 investor letter:

“We have been investors in the Swiss pharmaceutical company Novartis AG (NYSE:NVS) for over a decade, having first purchased shares in 2011. During our holding period, the company has undergone significant changes. Vasant (“Vas”) Narasimhan was promoted to CEO in 2018 and, we believe, has positively influenced the company’s culture and helped shift the business more toward innovative medicines. Examples include the sale of Novartis’s consumer (over-the-counter) joint venture; the divestiture of its vaccines and animal health businesses; the spinoff of Alcon, a global leader in the treatment of eye diseases and eye conditions (also an International Equity holding); and most recently, the spinoff of generics manufacturer Sandoz. As part of its portfolio transformation, Novartis has been able to improve its margins and gain share of branded pharmaceuticals. With many catalysts having neared completion, we decided to sell Novartis to fund the purchase of what we believe is a more optimal investment in Roche.”

9. Amgen Inc. (NASDAQ:AMGN)

Forward P/E Ratio: 14.93 

Earnings Growth This Year: 4.02% 

Number of Hedge Fund Holders: 72

Amgen Inc. (NASDAQ:AMGN) is a biotechnology company that specializes in creating medicines to treat serious diseases including cancer, heart disease, osteoporosis, and inflammatory conditions. It is well-known for its treatments like EPOGEN, Aranesp, Neulasta, and Repatha, among others.

On March 4, David Amsellem, analyst at Piper Sandler, reiterated a Buy rating on the stock, with a price target of $329. Amgen Inc. (NASDAQ:AMGN) has a robust portfolio of medicines. It ended fiscal 2024 with 14 medicines, where each medicine annualized at more than $1 billion. More notably the company is expanding its portfolio further in 2025. Its TEPEZZA is expected to be approved internationally, making it the only FDA-approved medicine to treat Thyroid Eye Disease. Moreover, new indications for UPLIZNA that treat neuromyelitis optica spectrum disorder are anticipated to further boost its portfolio. It is one of the best-undervalued stocks to invest in now.

PGIM Jennison Health Sciences Fund stated the following regarding Amgen Inc. (NASDAQ:AMGN) in its Q2 2024 investor letter:

“Amgen Inc. (NASDAQ:AMGN) is a large cap global biotech company with a diverse portfolio of marketed and pipeline products. Amgen’s discovery pipeline had led the company to broaden its focus from oncology, immunology, and renal disease to include musculoskeletal, cardiovascular, and neurologic conditions. In addition, Amgen has turned its expertise in antibody manufacturing into a leading position in the development of biosimilars of competitor drugs. Most recently, Amgen shares advanced in 2Q following its announcement that its novel injectable GLP-1 agonist / GIPR antagonist, MariTide, for obesity showed promising interim Phase 2 data and has shown enough promise to warrant advancement into pivotal trials as soon as late 2024. While Eli Lilly and Novo Nordisk will remain the market leaders in the diabetes / obesity space, we think there is room for Amgen to carve out a meaningful share of the market with its antibody-peptide conjugate approach that could enable monthly or better dosing for MariTide.”

8. Verizon Communications Inc. (NYSE:VZ)

Forward P/E Ratio: 9.22

Earnings Growth This Year: 1.87% 

Number of Hedge Fund Holders: 74

Verizon Communications Inc. (NYSE:VZ) is an international leader in telecommunications. Its services range from consumer services, where the company provides wireless and wireline communications services, to Technology and Streaming, where it provides streaming services and supports the Internet of Things (IoT), which involves connecting various devices to the Internet.

The company recently gained the spotlight due to its strategic partnership with Accenture which is aimed at enhancing cybersecurity services to help organizations across various industries tackle emerging threats. The partnership focuses on developing advanced cybersecurity solutions to address growing threats such as data breaches, phishing attacks, and social engineering. Moreover, on March 2, Scotiabank analyst Maher Yaghi raised the firm’s target on the stock from $47.5 to $48, while keeping a Buy rating on the stock.

Verizon Communications Inc. (NYSE:VZ) had a strong fiscal 2024, with strong financial results, including 3.1% wireless service revenue growth and 2.1% adjusted EBITDA growth. It also added 2.5 million postpaid mobility and broadband subscribers, expanding margins and ending the year with over $20 billion in wireless service revenue. Looking ahead, management expects significant wireless service revenue growth, focusing on service revenue, adjusted EBITDA, and free cash flow. It is one of the best-undervalued stocks to invest in now.

Third Point Management stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q3 2024 investor letter:

“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”

7. QUALCOMM Incorporated (NASDAQ:QCOM)

Forward P/E Ratio: 13.39

Earnings Growth This Year: 14.82% 

Number of Hedge Fund Holders: 79

QUALCOMM Incorporated (NASDAQ:QCOM) specializes in developing and commercializing technologies for the wireless industry. It is known for its semiconductor chips including the Snapdragon processors. The company owns a vast portfolio of patents related to wireless technology. It also licenses these patents to other companies, allowing them to use the technology in their products.

In the fiscal first quarter of 2025, the company generated $11.7 billion in revenue, indicating a 17.6% increase year-over-year. The growth was notable as this marked the third consecutive quarter of double-digit revenue growth. This is a new record for quarterly sales for the company. The growth is driven by the QCT segment which generated $10.1 billion in revenue after growing 20% during the same time.

On February 7, Analyst Cody Acree from Benchmark Co. reiterated a Buy rating on the stock, with a price target of $240. Cody likes the substantial growth QUALCOMM Incorporated (NASDAQ:QCOM) is making in its smartphone, IoT (Internet of Things), and automotive segments. Moreover, the analyst also noted that the chipset sales surpassed guidance, with notable year-over-year revenue increases in key areas. This success is crucial for Qualcomm’s continued dominance in the semiconductor market. It is one of the best-undervalued stocks to invest in now.

Fidelity Dividend Growth Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q3 2024 investor letter:

“At the stock level, QUALCOMM Incorporated (NASDAQ:QCOM) was a major detractor, returning about -14% the past three months. The firm develops and manufactures semiconductors, software and services used in mobile phones, and other wireless technologies. On July 31, the company reported second-quarter results, and issued guidance for Q3, both of which solidly exceeded expectations. The stock slid, however, on concerns about a slow recovery for smartphones. Additionally, shares dipped this quarter in step with other semiconductor-related names.”

6. The Goldman Sachs Group, Inc. (NYSE:GS)

Forward P/E Ratio: 13.38

Earnings Growth This Year: 14.69% 

Number of Hedge Fund Holders: 81

The Goldman Sachs Group, Inc. (NYSE:GS) is a major global financial institution that provides a wide range of financial services to various clients, including corporations, financial institutions, governments, and individuals. The company has proven its dominance by growing its revenue by more than 20% during the past 5 years.

It exercises its market edge by making strategic investments, arranging initial public offerings, and providing various financial products. During the fiscal fourth quarter of 2024, The Goldman Sachs Group, Inc. (NYSE:GS) $13.87 billion in sales, reflecting a 23% increase year-over-year. Moreover, the company also grew its assets under management by 12%, reaching a record high of $3.14 trillion.

On February 28, Jason Goldberg from Barclays maintained a Buy rating on the stock, with a price target of $760. Moreover, Ariel Appreciation Fund in its Q4 2024 investor letter stated the bank outperformed quarterly earnings, driven by its strength in investment banking, trading, and asset management segments. Goldman Sachs Group, Inc. (NYSE:GS) is one of the best undervalued stocks to invest in now.

Ariel Appreciation Fund stated the following regarding The Goldman Sachs Group, Inc. (NYSE:GS) in its Q4 2024 investor letter:

Several stocks in the portfolio delivered solid returns in the quarter. Global investment bank, The Goldman Sachs Group, Inc. (NYSE:GS) outperformed on a robust quarterly earnings beat, highlighted by strength across its investment banking, trading, and asset management segments. Meanwhile, the U.S. election has been widely viewed as a positive catalyst across the industry. Investors expect the incoming administration to 1 The “Magnificent Seven” are the largest stocks in the S&P 500 Index driving market performance: Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), Microsoft Corp. (MSFT), NVIDIA Corp. (NVDA) and Tesla, Inc. (TSLA). 2 Hobson, Mellody and John W. Rogers Jr. “What the Stock market Taught Us This Year: Don’t Fall for These Investing Traps.” Wall Street Journal, 5 December 2023. emphasize deregulation and exhibit a greater openness to business combinations compared to the prior regime. Hence, management’s positive commentary around the operating momentum of its core franchises, an improving M&A outlook, and the resilience of the U.S. economy sent shares higher.

5. PDD Holdings Inc. (NASDAQ:PDD)

Forward P/E Ratio: 10.09 

Earnings Growth This Year: 75.64%

Number of Hedge Fund Holders: 85

PDD Holdings Inc. (NASDAQ:PDD) is a multinational company that operates several businesses, primarily focusing on e-commerce. The company helps businesses and people join the digital economy, which means it assists in moving traditional businesses online. This helps local communities and small businesses by increasing their productivity and providing new opportunities. The company is known for two popular platforms including Pinduoduo and Temu.

The strategic edge of the company lies in its networking power and the web of networks it has established to handle sourcing, logistics, and fulfillment for its businesses. During the fiscal third quarter of 2024, PDD Holdings Inc. (NASDAQ:PDD) achieved a total revenue of $14.16 billion, reflecting a 44% increase year-over-year. Baron Funds in its Q3 2024 investor letter stated that the company has become China’s second-largest e-commerce company, capturing over 20% of the market share. The company uses algorithms to create a highly engaging platform, driving user and merchant growth in a virtuous cycle. This approach enhances user interaction and encourages repeat purchases.

Moreover, GreenWood Investors stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its Q4 2024 investor letter:

“Aside from transitory foreign exchange translation losses (as opposed to trading losses), the two other notable detractors from our portfolio were MEI Pharma and PDD Holdings Inc. (NASDAQ:PDD) in 2024.

PDD Holdings founder Colin Huang is who inspired us to “run 3x faster,” as the relentless corporate culture of PDD has built an e-commerce company with roughly the same GMV (gross merchandise value) of Amazon in one-third the time it took Amazon to build itself. Shares reacted negatively when the company decided to reinvest its record margins into even faster growth and creating a healthier supplier ecosystem. As it looks set to create a second Amazon with its international site Temu, we are highly attracted to the opportunity. Sales are growing 4x faster than Amazon’s, yet shares are priced at less than a quarter of the Amazon earnings multiple.

PDD is a perfect example of why we want to look outside of the “Big Ten” companies that are nearly a third of global market indices. We would not want to compete with the demanding corporate culture of PDD and Temu. Its operating model is relentless at identifying efficiency throughout the manufacturing and selling supply chain. Not only is it a mor formidable competitor than Amazon, and growing much faster, but the valuation is 4x more attractive than Amazon’s…” (Click here to read the full text)

4. Merck & Co., Inc. (NYSE:MRK)

Forward P/E Ratio: 10.27 

Earnings Growth This Year: 17.44% 

Number of Hedge Fund Holders: 91

Merck & Co., Inc. (NYSE:MRK) is a large pharmaceutical company that focuses on creating and selling medicines, vaccines, and other health-related products for both humans and animals. The company continues to make significant investments in expanding KEYTRUDA’s indications to expand its lifecycle and market dominance.

The company’s anti-PD-1 therapy, KEYTRUDA (pembrolizumab), has been granted priority review by the FDA for treating patients with resectable locally advanced head and neck squamous cell carcinoma. KEYTRUDA is proposed for use before surgery and after surgery in combination with radiotherapy and possibly cisplatin, then as a single agent. This application is based on positive results from the Phase 3 KEYNOTE-689 trial, which showed significant improvements in event-free survival and major pathological response compared to standard treatments.

Merck & Co., Inc. (NYSE:MRK) delivered robust performance in fiscal 2024, driven by demand for innovative products like KEYTRUDA, which is helping more cancer patients worldwide. Other contributing factors included the successful launch of WINREVAIR and the robust performance of its Animal Health division. For 2025, the company expects sales between $64.1 billion and $65.6 billion, with a non-GAAP gross margin of approximately 82.5%. It is one of the best-undervalued stocks to invest in now.

GreensKeeper Asset Management stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:

“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”

3. Wells Fargo & Company (NYSE:WFC)

Forward P/E Ratio: 13.33 

Earnings Growth This Year: 4.95% 

Number of Hedge Fund Holders: 96

Wells Fargo & Company (NYSE:WFC) is another notable large financial services company that offers a wide range of financial products and services. Its services range from banking services, and investment services, to mortgage and commercial banking. The company operates in all 50 US states. On March 5, John Pancari from Evercore ISI maintained a Buy rating on the stocks, with a price target of $91.

During the fiscal fourth quarter of 2024, the company posted a revenue of $20.3 billion, indicating a slight decrease of 0.5% year-over-year. On the bright side, the net income increased from $3.4 billion to $5.07 billion. Management noted that the increase was driven by a 15% year-over-year increase in fee-based revenue which helped subside the decline in net interest income. The investment banking sector of Wells Fargo & Company (NYSE:WFC) has gained significant traction. During the fourth quarter, investment banking fees surged by 59% year-over-year. It is one of the best-undervalued stocks to invest in now.

Oakmark Fund stated the following regarding Wells Fargo & Company (NYSE:WFC) in its Q4 2024 investor letter:

“Wells Fargo & Company (NYSE:WFC) was the top contributor during the quarter. The U.S.-headquartered diversified bank’s stock price rose after reporting what we see as solid third-quarter earnings where the company’s efficiency ratio continued to improve as expenses were well controlled. The fee income segment also performed well, growing 12%. In addition, Wells Fargo had the opportunity to repurchase $3.5 billion in shares during the period, bringing the full-year repurchase to roughly $16 billion. In November, the stock price continued its upward trend following the U.S. presidential election as investors are optimistic that the financials sector will benefit from looser regulations and lower corporate taxes, thus stimulating a better environment for dealmaking. We continue to believe that Wells Fargo is a competitively advantaged bank that can use its superior business mix and return potential to unlock further value.”

2. Alibaba Group Holding Limited (NYSE:BABA)

Forward P/E Ratio: 14.8 

Earnings Growth This Year: 4.81% 

Number of Hedge Fund Holders: 107

Alibaba Group Holding Limited (NYSE:BABA) is a technology infrastructure and e-commerce giant. It runs platforms like Taobao, Tmall, and AliExpress, which allow businesses to sell products to consumers both within China and internationally. Whereas, Alibaba.com is a wholesale marketplace connecting businesses with suppliers. The company also operates Alibaba Cloud through which it provides cloud services such as computing power, storage, and analytics to businesses of all sizes.

On February 28, Arete upgraded the stock to Buy from Neutral with a $164 price target. Alibaba Group Holding Limited (NYSE:BABA) recently gained the spotlight after Apple partnered with Alibaba to launch AI features in China. By partnering with Apple, the company has gained credibility in the AI sector, positioning itself as a major player alongside other Chinese tech giants.

Moreover, Artisan Select Equity Fund in its Q4 2024 investor letter stated that the current valuation of Alibaba Group Holding Limited (NYSE:BABA) fails to reflect the company’s true potential. The fund stated that the share price initially rose due to an unexpected stimulus package announced by the Chinese government. However, once the reality of the stimulus’s limited impact became clear, the stock price adjusted downward. However, regardless the company remains a leading player in several attractive market segments, such as e-commerce and cloud computing. It has been actively restructuring by selling off non-core businesses and returning capital to shareholders through share buybacks. This strategy is seen as positive for long-term growth. Alibaba Group Holding Limited (NYSE:BABA) is one of the best undervalued stocks to invest in now.

Artisan Select Equity Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q4 2024 investor letter:

“Alibaba Group Holding Limited’s (NYSE:BABA) share price decline was primarily giving back the gains from the prior quarter. Recall that all Chinese stocks surged last quarter after the Chinese government unveiled an unanticipated stimulus that temporarily captivated investors. The reality of the undersized stimulus and the challenges facing the Chinese economy eventually prevailed, leading Chinese equities—including Alibaba—to come back down to earth. Despite our concerns about China’s economic outlook, which we outlined in detail in last quarter’s letter, shares of Alibaba still represent significant value. The company is a leading player in several attractive market segments. We believe management is doing the right things, such as selling off businesses and returning capital to shareholders. It has made several changes to management and strategy that we expect will return the business to healthy growth over the coming year. In our opinion, the valuation is depressed and does not reflect a fair value for a company with these attributes.”

1. Bank of America Corporation (NYSE:BAC)

Forward P/E Ratio: 12.49 

Earnings Growth This Year: 14.99% 

Number of Hedge Fund Holders: 113

Bank of America Corporation (NYSE:BAC) is a financial institution that operates through several main segments including Consumer Banking, Global Wealth and Investment Management, Global Banking, and Global Markets.

During the fiscal fourth quarter of 2024, Bank of America Corporation (NYSE:BAC) reported a solid financial performance. Its revenue increased $22 billion last year to $25.3 billion. Whereas the net income grew more than double to reach $6.7 billion. Management noted that they continue to grow their client base and added 213,000 new consumer checking accounts, marking a streak of quarterly growth to six years. On February 18, David Konrad from KBW maintained a Buy rating on the stock with a price target of $59. It is the best-undervalued stock to invest in now and was held by 113 hedge funds in Q4 2024.

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.”

While we acknowledge the potential of Bank of America Corporation (NYSE:BAC) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.