15 Best and Cheap Stocks to Buy According to Billionaires

8. Bank of America Corporation (NYSE:BAC)

Forward P/E Ratio: 11.20

No. of Billionaire Investors: 18

Bank of America Corporation (NYSE:BAC) is a bank and financial holding company that operates in the Consumer Banking, Global Wealth and Investment Management (GWIM), Global Banking, and Global Markets segments. A wide economic moat adds to the company’s competitive market advantages, reducing its chances of operation disruption. Bank of America Corporation operates at a massive scale, generating around $102 billion in revenue in 2024 and ending the year with $3.3 trillion in assets.

On March 7, Baird analyst David George upgraded the rating on BAC from Neutral to Outperform, increasing the price target from $45 to $50. The analyst cited the key factors for the BAC’s positive outlook such as its consistent execution, relatively low credit risk, and robust market businesses.

In 2024, Bank of America Corporation’s (NYSE:BAC) Consumer Banking division generated approximately $11 billion, representing 40% of the company’s total earnings. In Q4 2024, the Consumer Banking division secured more than 200,000 net new checking accounts and continued a six-year streak of quarterly growth. The bank is investing in digital capabilities and maintaining disciplined deposit pricing, with a major focus on continued growth. BAC is also expecting continued growth in consumer loan categories.