5 Best Diversified Bank Stocks to Buy Now

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 100

Bank of America Corporation (NYSE:BAC) is a diversified banking stock providing banking and financial products across the globe. It is based in Charlotte, North Carolina.

RBC Capital holds an Outperform rating on Bank of America Corporation (NYSE:BAC) shares as of April 19.

The average price target placed on Bank of America Corporation (NYSE:BAC) shares is $36.35, and the shares were trading at $29.28 on April 29. This gives them an upside potential of 24.15%.

In total, 100 hedge funds were long Bank of America Corporation (NYSE:BAC) in the fourth quarter, with a total stake value of $37.6 billion.

Oakmark Funds, advised by Harris Associates, mentioned Bank of America Corporation (NYSE:BAC) in its first-quarter 2023 investor letter. Here’s what the firm said:

“The Oakmark Equity and Income Fund has 29% of its equity portfolio in financials. This made the March sell-off painful, but we do not believe that this has meaningfully changed the value of most of our financial equity holdings. In fact, we were adding to financial positions throughout March. We believe that one way to analyze our financial holdings is to look at them in different buckets given their various business models and risk profiles. Almost 30% of our financial exposure is in insurance companies and insurance brokers. Insurance companies have very stable liability profiles, so the main risk is a change in asset values. We are comfortable with their investment portfolios and think these stocks are quite attractive. Around 5% of our financials are asset managers. This leaves a little over 40% of the financials exposure in a varied group of banks and lenders. About 5% of that portfolio is in Bank of America Corporation (NYSE:BAC) and State Street. These two banks are designated as Systematically Important Financial Institutions and are held to higher regulatory standards. Our largest single financials holding is Bank of America, which has grown deposits during March, and we believe it is one of the best managed companies in the sector.”