15 Best Stocks to Buy According to Hosking Partners

9. Bank of America Corporation (NYSE:BAC)

Hosking Partners’ Stake Value: $65,278,001

Percentage of Hosking Partners’ 13F Portfolio: 2.41%

Number of Hedge Fund Holders: 92

Bank of America Corporation (NYSE:BAC) in Q2 of 2024 reported net income of $6.9 billion after tax, or $0.83 in diluted EPS. Earnings were evenly split between consumer and GWIM businesses, and institutional-focused global banking and markets business. Revenue growth from the second quarter of 2023 was driven by a rise in non-interest income, which offset the decline in net interest income. Fees increased by 6% year-over-year, making up 46% of total revenue, with a notable 14% rise in asset management fees in our wealth management sector.

Bank of America Corporation (NYSE:BAC) was able to add 278,000 net new checking accounts this quarter, totaling over 500,000 in the first half of 2024. Wealth management gained 6,100 new relationships, and the commercial sector expanded by thousands of small business accounts and hundreds of commercial banking relationships. Bank of America Corporation (NYSE:BAC) now manages $5.7 trillion in client balances, loans, deposits, and investments in the consumer and wealth management segments, with $58 billion in flows over the past year. Investment banking fees grew by 29% year-over-year, sales and trading revenue increased by 7%, and card and service charge revenue in its consumer business also grew by 6%.

While the analysts expect BAC’s EPS to decline by 4.7% to $3.26 on a diluted basis for the current fiscal year, the company has consistently exceeded consensus estimates over the past four quarters. On July 30, analyst Betsy Graseck of Morgan Stanley maintained a “Buy” rating for Bank of America with a $49 price target, suggesting a 21.6% upside potential