In this article, we discuss the 5 best bank and finance stocks to buy according to Mario Gabelli. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Bank and Finance Stocks to Buy According to Mario Gabelli.
5. Wells Fargo & Company (NYSE: WFC)
Number of Hedge Fund Holders: 94
Wells Fargo & Company (NYSE: WFC) is ranked fifth on our list of 10 best bank and finance stocks to buy according to Mario Gabelli. The firm markets financial services and operates from California. According to the latest filings, GAMCO Investors owned more than 1.4 million shares in the company at the end of June 2021 worth $64.4 million, representing 0.54% of the portfolio.
On July 15, investment advisory Barclays reiterated an Equal Weight rating on Wells Fargo & Company (NYSE: WFC) stock and raised the price target to $50 from $46, appreciating the earnings beat of the firm in the second quarter.
At the end of the second quarter of 2021, 94 hedge funds in the database of Insider Monkey held stakes worth $7 billion in Wells Fargo & Company (NYSE: WFC) , down from 96 in the previous quarter worth $7.4 billion.
In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Wells Fargo & Company (NYSE: WFC) was one of them. Here is what the fund said:
“Detractors to performance relative to the index include financial services holdings such as Wells Fargo. While banks in general have suffered due to the recession and experienced credit losses, Wells Fargo also suffered from operational missteps. It is our expectation, however, that our bank holdings in general will benefit from stronger economic growth as the pandemic recedes; and we believe Wells Fargo in particular, will, over time, lower their costs and successfully grow their businesses.”
4. JPMorgan Chase & Co. (NYSE: JPM)
Number of Hedge Fund Holders: 108
JPMorgan Chase & Co. (NYSE: JPM) is a New York-based financial services company. It is placed fourth on our list of 10 best bank and finance stocks to buy according to Mario Gabelli. Regulatory filings show that GAMCO Investors owned 456,348 shares in the firm at the end of the second quarter of 2021 worth $70.9 million, representing 0.6% of the portfolio.
On July 14, investment advisory Credit Suisse maintained an Outperform rating on JPMorgan Chase & Co. (NYSE: JPM) stock and raised the price target to $177 from $170, noting the upside was driven by broad based revenue and operating leverage realization.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in the firm with 6.9 million shares worth more than $1 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE: JPM) was one of them. Here is what the fund said:
“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”
3. State Street Corporation (NYSE: STT)
Number of Hedge Fund Holders: 37
State Street Corporation (NYSE: STT) is a Boston-based firm that provides financial products. It is ranked third on our list of 10 best bank and finance stocks to buy according to Mario Gabelli. Securities filings show that GAMCO Investors owned 959,255 shares in the firm at the end of June 2021 worth $78.2 million, representing 0.66% of the portfolio.
On July 19, investment advisory Deutsche Bank maintained a Buy rating on State Street Corporation (NYSE: STT) stock and raised the price target to $105 from $104, appreciating the strong quarterly earnings report of the financial services firm.
Out of the hedge funds being tracked by Insider Monkey, Texas-based firm Yacktman Asset Management is a leading shareholder in State Street Corporation (NYSE: STT) with 3.5 million shares worth more than $290 million.
2. The Bank of New York Mellon Corporation (NYSE: BK)
Number of Hedge Fund Holders: 52
The Bank of New York Mellon Corporation (NYSE: BK) is placed second on our list of 10 best bank and finance stocks to buy according to Mario Gabelli. The company provides a range of financial services and is headquartered in New York. Latest data shows that GAMCO Investors owned over 2.3 million shares in the firm at the end of the second quarter of 2021 worth more than $121 million, representing 1.03% of the portfolio.
On July 20, investment advisory Argus upgraded The Bank of New York Mellon Corporation (NYSE: BK) stock to Buy from Hold with a price target of $55, underlining that the revenue of the firm would improve based on a higher short-term interest rate environment.
At the end of the second quarter of 2021, 52 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in The Bank of New York Mellon Corporation (NYSE: BK), up from 49 the preceding quarter worth $4.7 billion.
1. American Express Company (NYSE: AXP)
Number of Hedge Fund Holders: 52
American Express Company (NYSE: AXP) is ranked first on our list of 10 best bank and finance stocks to buy according to Mario Gabelli. The company provides payments services and is based in New York. GAMCO Investors owned more than 1 million shares in the firm at the end of the second quarter of 2021 worth $168 million, representing 1.42% of the portfolio.
On July 26, investment advisory RBC Capital reiterated a Sector Perform rating on American Express Company (NYSE: AXP) stock and raised the price target to $185 from $174, noting that the second quarter earnings of the firm were strong with revenue trends improving.
Out of the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in American Express Company (NYSE: AXP) with 15.3 million shares worth more than $2.5 billion.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and American Express Company (NYSE: AXP) was one of them. Here is what the fund said:
“In financials, American Express has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”
You can also take a peek at Stanley Druckenmiller is Loading Up on These 15 Stocks and 10 Stocks to Buy and Hold for Long Term According to Warren Buffett.
