In this article, we will be taking a look at the 5 best bank stocks to buy now. To read our detailed analysis of these stocks and the banking sector, you can go directly to see the 12 Best Bank Stocks to Buy Now.
5. Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 69
Goldman Sachs Group, Inc. (NYSE:GS) is a financial institution that provides various financial services for corporations, governments, and individuals across the globe. It is based in New York.
An ‘Outperform’ rating was reiterated on Goldman Sachs Group, Inc. (NYSE:GS) shares on July 19 by BMO Capital’s James Fotheringham. The analyst also holds a $461 price target on the stock.
This July, Goldman Sachs Group, Inc. (NYSE:GS) declared a quarterly dividend of $2.50, up 25% from the company’s past dividend. The company’s revenue rose significantly in the second quarter, with the firm’s Asset Management division growing net revenue by 99% compared to the first quarter to reach $1.1 billion.
There were 69 hedge funds long Goldman Sachs Group, Inc. (NYSE:GS) in the second quarter, holding a total stake value of $4.6 billion.
4. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 82
Citigroup Inc. (NYSE:C) is a diversified financial services holding company providing a range of financial products and services. The company operates through its Global Consumer Banking and Institutional Clients Group segments.
Chris Kotowski at Oppenheimer holds an ‘Outperform’ rating on Citigroup Inc. (NYSE:C) shares as of July 18. The analyst also raised his price target on the stock from $81 to $86.
Citigroup Inc. (NYSE:C) had EPS of $2.30 in the second quarter, beating estimates by $0.60. The company’s revenue was $19.6 billion, also beating estimates by $1.3 billion.
Out of 895 hedge funds, 82 were long Citigroup Inc. (NYSE:C) in the second quarter, compared to 88 in the previous quarter. Their total stake values were $7.4 billion and $8.1 billion respectively.
Diamond Hill Capital, an investment management firm, mentioned Citigroup Inc. (NYSE:C) in its first quarter 2022 investor letter. Here’s what the fund said:
“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”
3. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 83
Wells Fargo & Company (NYSE:WFC) is a diversified banking company. It provides banking, investment, mortgage, and consumer and commercial finance products and services in the U.S. and globally.
An ‘Overweight’ rating was reiterated on Wells Fargo & Company (NYSE:WFC) shares on July 17 by analyst Jason Goldberg at Barclays. Goldberg also placed a $58 price target on the stock.
This July, Wells Fargo & Company (NYSE:WFC) raised its quarterly dividend to $0.30 per share. This represents a 20% increase from the company’s previous dividend of $0.25.
Wells Fargo & Company (NYSE:WFC) was in the 13F portfolios of 83 hedge funds at the end of the second quarter. Their total stake value was $5.2 billion.
2. Bank of America Corporation (NYSE:BAC)
Number of Hedge Fund Holders: 99
Bank of America Corporation (NYSE:BAC) is a provider of banking and financial products and services through its subsidiaries. The company serves individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments across the globe.
Bank of America Corporation (NYSE:BAC) has a five-year trailing return of 12%, and a 10-year trailing return of 19.2% as of this August. The company’s EPS is expected to grow by 8.1% over the next three to five years, and it currently holds a one-year dividend growth rate of 16.7%.
RBC Capital’s Gerard Cassidy holds an ‘Outperform’ rating on shares of Bank of America Corporation (NYSE:BAC) as of July 19. The analyst also has a $40 price target on the stock.
As of the close of the second quarter, 99 hedge funds were long Bank of America Corporation (NYSE:BAC), unchanged from the previous quarter. Their total stake values were $35.9 billion and $45.4 billion respectively.
ClearBridge Investments, an investment management firm, mentioned Bank of America Corporation (NYSE:BAC) in its second quarter 2022 investor letter. Here’s what it said:
“In the second quarter we made a sizable add to our position in Bank of America (NYSE:BAC) as our bank holdings have significant leverage to rising interest rates. The Fed, unfortunately, was late to realize inflation’s magnitude, maintaining for far too long that inflationary pressures were merely transitory. This mistake caused inflation to accelerate, necessitating a larger intervention than if the Fed had moved sooner.”
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 104
JPMorgan Chase & Co. (NYSE:JPM) is a diversified banking and financial services company operating across the globe. The company offers deposit, investment and lending products, payments, and services to consumers, among other services.
Analyst Gerard Cassidy at RBC Capital holds an ‘Outperform’ rating on JPMorgan Chase & Co. (NYSE:JPM) shares as of July 15. The analyst also has a $130 price target on the stock.
During the second quarter, JPMorgan Chase & Co. (NYSE:JPM) delivered EPS of $2.76, beating the previous quarter’s EPS of $2.63. The company’s revenue was $30.7 billion, up 0.8% year-over-year. JPMorgan Chase & Co.’s (NYSE:JPM) EPS is expected to rise by 0.7% over the next three to five years, and its current one-year dividend growth rate is 11.1%.
Our hedge fund data shows 104 hedge funds long JPMorgan Chase & Co. (NYSE:JPM) in the second quarter of 2022. Their total stake value was $5.8 billion.
Be sure to also check out the 10 Best Vanguard Stocks to Buy Now and 15 Best Security Stocks to Buy Now.
