11 Most Undervalued Quality Stocks to Buy Now

8. Bank of New York Mellon Corp. (NYSE:BK)

Forward P/E Ratio as of April 14: 11.43

Number of Hedge Fund Holders: 59

Bank of New York Mellon Corp. (NYSE:BK) provides financial products and services internationally. It operates through Securities Services, Market & Wealth Services, Investment & Wealth Management, and other segments. It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities high net-worth individuals, and family offices.

Pershing is a key component of the company’s Market & Wealth Services segment and provides brokerage and clearing solutions to financial advisors and institutions by using the company’s platforms and technology. In Q4 2024, Pershing investment services fees increased by 9% year-over-year. The segment reported net new assets of $41 billion, which included a substantial client onboarding during this quarter.

Pershing contributed to the overall performance of the Market & Wealth Services segment, which recorded a 12% year-over-year increase in total investment services fees. This growth underscores this segment’s role in Bank of New York Mellon Corp.’s (NYSE:BK) overall strategy to drive revenue and profitability.

Parnassus Value Equity Fund stated the following regarding The Bank of New York Mellon Corporation (NYSE:BK) in its Q3 2024 investor letter:

“The Bank of New York Mellon Corporation (NYSE:BK) posted better-than-expected second-quarter profit and revenue, driven in part by higher fees. Further, the Federal Reserve’s interest rate cut is expected to reduce funding costs and improve BNY’s margins.”