12 Best Affordable Stocks To Buy Right Now

3. Bank of America Corporation (NYSE:BAC)

Forward P/E Ratio: 14.65

Earnings Growth This Year: 5.26%

Number of Hedge Fund Holders: 98 

Bank of America Corporation (NYSE:BAC) is one of the best affordable stocks to buy right now. It is a major American multinational investment bank and financial services holding company, headquartered in Charlotte, North Carolina. It operates through several key segments that cater to a diverse range of customers, including consumers, small businesses, corporations, and institutional investors.

The bank presents a compelling investment opportunity, particularly due to its robust focus on technology and innovation. In the third quarter of 2024, the bank reported a net income of $6.9 billion, driven by solid revenue growth across various sectors, including asset management and investment banking fees. The bank has ramped up its investment in the technology sector, according to an October 23 press release, its commitment to innovation resulted in a 95% increase in artificial intelligence and machine learning granted patent applications since 2022. Moreover, as of October 23, Bank of America Corporation (NYSE:BAC) had around 1,100 AI and ML patents and pending applications in its portfolio.

In addition to funding technology investments, the bank has worked towards streamlining its operations digitally. Digital sales accounted for 54% of total consumer sales, underscoring the effectiveness of its technological initiatives in driving revenue. Looking ahead, Bank of America Corporation’s (NYSE:BAC) focus on integrating high-tech solutions to its banking solutions is expected to enhance client relationships across its wealth management and consumer banking segments.

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.”