11 Cheap NYSE Stocks to Invest in According to Hedge Funds

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

Forward P/E Ratio as of April 8: 9.62

Number of Hedge Fund Holders: 113

Bank of America Corp. (NYSE:BAC) offers financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets.

In 2024, the company’s Consumer Banking division made $11 billion in revenue, which contributed 40% to the total earnings. With the addition of over 200,000 net new checking accounts, the division marked 6 years of growth. The company’s digital engagement was also strong, with over 14 billion logins and digital sales higher than 60% in Q4. The company’s AI-powered Erica platform surpassed 2.5 billion interactions in this quarter.

It’s investing in digital capabilities and maintaining disciplined deposit pricing for continued growth. On March 7, David George of Baird upgraded the company’s rating from Neutral to Outperform, while raising its price target from $45 to $50. As of now, Bank of America Corp. (NYSE:BAC) has a client base of 68 million, operates 3,900 branches, and 16,000 ATMs, and serves 56 million digital users.

Hardman Johnston Global Equity Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q4 2024 investor letter:

“Bank of America Corporation (NYSE:BAC) is the second largest bank in the developed world and operates the third largest branch network in the US. With 86% of revenues coming from the US, the bank is a clear beneficiary of the lower regulatory environment expected from the incoming administration. The company’s business is highly diversified across retail, commercial, wealth management, and investment banking, with significant scale across all verticals. Management believes there is a big opportunity going forward in growing and monetizing its mass retail client base. Wealth is another huge opportunity, with the Merrill Lynch platform enabling customers to make more transactions and purchase additional products. Lastly, Bank of America has an opportunity to increase efficiency through cost reduction and online banking. Our expectation is for the bank’s ROE to move significantly higher, driving EPS growth and higher multiples.”