In this article we discuss the 5 Best Bank Stocks for 2021. If you want to read our detailed analysis of the banking industry, go directly to 10 Best Bank Stocks for 2021.
5. Morgan Stanley (NYSE: MS)
With over 60,000 employees and presence in about 42 countries, Morgan Stanley is one of the biggest financial services companies in the world. The company operates various segments, including Institutional Securities, Wealth Management and Investment Management. In the fourth quarter of 2020, Jeffrey Ubben’s ValueAct Capital trimmed its stake in the company by 28%. The fund still owns 8.28 million shares of the company, worth $567.68 million.
According to our database, the number of Morgan Stanley’s long hedge funds positions decreased at the end of the fourth quarter of 2020. There were 66 hedge funds that hold a position in Morgan Stanley by the end of December, compared to the 70 funds in the third quarter. The biggest stakeholder of the company is Boykin Curry’s Eagle Capital Management, with 13 million shares, worth $894 million.
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4. The Goldman Sachs Group, Inc. (NYSE: GS)
Goldman Sachs is one of the largest investment banking and financial services companies in the world. As of the end of 2020, the bank has over $1.3 trillion worth of assets. The bank recently said it plans to launch a low-cost digital investment platform called “Marcus Invest” with an intention to allow general public to trade and invest in stocks. In the fourth quarter, Ken Fisher’s Fisher Asset Management upped its stake in the bank by 7%, ending the period with 2.48 million shares of the company, worth $652.9 million.
There were 76 hedge funds in our database that held stakes in The Goldman Sachs Group Inc., compared to 70 funds in the third quarter. Eagle Capital Management is the biggest stakeholder in the company.
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3. Citigroup Inc. (NYSE: C)
Citigroup ranks 3rd on the list of 10 best bank stocks for 2021. The bank was formed as a result of the merger between Citicorp and financial conglomerate Travelers Group. As of the end of 2019, Citigroup has total assets worth $1.95 trillion. The bank has over 138 million credit card accounts and $564 billion in annual purchase sales. Citi’s global consumer banking operations have about 2,348 branches and generated $7.4 billion in pre-tax earnings in 2019.
As of the end of the fourth quarter, 95 hedge funds in Insider Monkey’s database of 887 funds held stakes in Citigroup Inc., compared to 91 funds in the third quarter. Harris Associates is the biggest stakeholder in the company, with 27 million shares, worth $1.67 billion.
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2. Wells Fargo & Company (NYSE: WFC)
Ranking 2nd on the list of 10 best bank stocks for 2021 is Wells Fargo. The bank has over $1.9 trillion worth of assets, over 65 million customers and 26 million active mobile banking users. The bank recently announced it will sell Wells Fargo Asset Management to private equity firms GTCR LLC and Reverence Capital Partners for $2.1 billion. The move is part of Wells Fargo’s strategy to expand its wealth and brokerage business. In the fourth quarter of 2020, legendary investor Warren Buffett’s fund Berkshire Hathaway cut its stake in the bank by 59%, ending the period with 52.4 million shares of the company, worth $1.58 billion.
Our database shows that 99 hedge funds held stakes in Wells Fargo & Company at the end of December, versus the 90 funds in the third quarter.
1. Bank of America Corporation (NYSE: BAC)
Topping the list of 10 best bank stocks for 2021 is Bank of America, the second-largest banking company in the country. As of the end of 2020, Bank of America has over $2.82 trillion worth of assets. The bank operates in over 35 countries and serves of 66 million consumer accounts. In the fourth quarter, Bank of America’s profit fell 28% to $0.59 per share, but surpassed the Wall Street’s estimate of $0.55 Revenue in the period fell 10% to $20.2 billion, missing the analysts’ forecasts by about $500 million.
A total of 99 hedge funds tracked by Insider Monkey were long BAC at the end of December 2020, compared to 88 funds a quarter earlier.
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