14 Best Affordable Stocks to Buy According to Hedge Funds

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1. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 113

Share Price as of March 22: $42.47

P/E Ratio as of March 22: 13.23

Bank of America Corporation (NYSE:BAC) is one of the largest financial institutions in the world, providing banking, investment, and lending services to individuals, businesses, and governments. On January 29, the company announced a quarterly dividend of $0.26 per share, to be distributed on March 28, to shareholders on record as of March 7. Preferred Series B shareholders on record by April 11 will also receive a dividend payout of $1.75 per share on April 25. BAC ranks 1st on our list of the best affordable stocks to invest in.

Bank of America Corporation (NYSE:BAC) reported $6.7 billion in Q4 2024 net income, more than double what it earned last year. Revenue jumped 15% to $25.3 billion, driven by higher fees from asset management, investment banking, and trading. The company’s net interest income also grew by 3%, boosted by loan growth and market activity, though lower interest rates offset some of the gains. Deposits and loans both rose by 3% year-over-year in Q4, showing solid growth. The bank also returned $5.5 billion to shareholders through dividends and stock buybacks during the quarter.

According to Insider Monkey’s fourth quarter database, 113 hedge funds were bullish on Bank of America Corporation (NYSE:BAC), compared to 98 funds that had invested in the company in the prior quarter. Warren Buffett’s Berkshire Hathaway was the biggest stakeholder of BAC, with a $30 billion position.

Overall, Bank of America Corporation (NYSE:BAC) ranks first on our list of the best affordable stocks to buy according to hedge funds. While we acknowledge the potential of BAC to grow, our conviction lies in the belief that certain 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 30 Best Stocks to Buy Now According to Billionaires.

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