5 Best Financial Stocks To Buy According to Hedge Funds

In this article we will be taking a look at the 5 best financial stocks to buy according to hedge funds. To read our detailed analysis of the financial sector, you can go directly to see 16 Best Financial Stocks To Buy According to Hedge Funds.

5. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 96

Bank of America Corporation (NYSE:BAC) is a diversified banking company. It is based in Charlotte, North Carolina.

Oppenheimer’s Chris Kotowski maintains an Outperform rating and a $50 price target on Bank of America Corporation (NYSE:BAC) as of January 30.

There were 96 hedge funds long Bank of America Corporation (NYSE:BAC) in the fourth quarter, with a total stake value of $39.9 billion.

4. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 103

A total of 103 hedge funds were long JPMorgan Chase & Co. (NYSE:JPM) in the fourth quarter, with a total stake value of $9.1 billion.

JPMorgan Chase & Co. (NYSE:JPM) is another diversified banking company on our list. It offers corporate and investment banking, commercial banking, consumer and community banking, and asset and wealth management services.

A Buy rating was maintained on JPMorgan Chase & Co. (NYSE:JPM) on February 1 by Richard Ramsden at Goldman Sachs.

Here’s what Madison Investments said about JPMorgan Chase & Co. (NYSE:JPM) in its fourth-quarter 2023 investor letter:

“We updated the sustainable scorecard for JPMorgan Chase & Co. (NYSE:JPM). JP Morgan continues to have an Average rating across Governance, Social and Environmental factors. JP Morgan is using its business to improve climate change. JP Morgan has targeted $2.5 trillion in financing between 2021 and 2030 to advance long-term solutions to address climate change and sustainable development. The Board has oversight of corporate responsibility and ESG matters, but ESG and Sustainability are addressed across the firm. JPM does listen to shareholders. After a 31% For Vote on executive compensation in 2022, the Board will not be granting any special awards to Jamie Dimon or Daniel Pinto and if awarded to other Named Executive Officers, there will be a direct performance condition associated with the award. The Compensation Committee limited the cash percentage of Dimon and Pinto’s compensation.”

3. Berkshire Hathaway Inc. (NYSE:BRK-B)

Number of Hedge Fund Holders: 117

Berkshire Hathaway Inc. (NYSE:BRK-B) is a multi-sector holdings company operating in the financials sector. It is based in Omaha, Nebraska.

We saw 117 hedge funds long Berkshire Hathaway Inc. (NYSE:BRK-B) in the fourth quarter, with a total stake value of $15.1 billion.

UBS analyst Brian Meredith maintains a Buy rating and a $435 price target on Berkshire Hathaway Inc. (NYSE:BRK-B) as of January 24.

2. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 141

Mastercard Incorporated (NYSE:MA) is a transaction and payment processing services company. It is based in Purchase, New York.

On February 1, RBC Capital’s Daniel Perlin maintained an Outperform rating and a $499 price target on Mastercard Incorporated (NYSE:MA).

Mastercard Incorporated (NYSE:MA) had 141 hedge funds long its stock in the fourth quarter, with a total stake value of $16.9 billion.

Ensemble Capital Management mentioned Mastercard Incorporated (NYSE:MA) in its fourth-quarter 2023 investor letter:

“Mastercard Incorporated (NYSE:MA) (7.21% weight in the Fund): Payment companies are data companies. As we discussed last quarter in our write up of Mastercard, merchants can generate significant value from analyzing payment data to better understand their customers. Mastercard has long built AI-based products to enhance payment security and provide merchants with rich data analytics. In December, they rolled out Muse, a new online shopping companion that merchants who utilize certain Mastercard services can install on their own websites.

Muse seeks to replicate the instore experience of working with a salesclerk by allowing the customer to use natural language to browse products. Online shopping already works well if you know exactly what you are looking for, but Muse is striving to help customers find things to buy even when they aren’t sure what they are looking for.

Mastercard (7.21% weight in the Fund): In late October, Mastercard reported earnings that investors interpreted as pointing to a near term slowdown in payment growth. The stock fell 5.6% on the day. By the end of the next week, the stock had recovered its losses and went on to reach a new all time high on the last day of the year. But the 7.9% gain on the quarter slightly trailed the S&P 500.”

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 162

In total, 162 hedge funds were long Visa Inc. (NYSE:V) in the fourth quarter, with a total stake value of $26.5 billion.

Visa Inc. (NYSE:V) is another transaction and payment processing services company on our list. It is based in San Francisco, California.

Barclays’ Raimo Lenschow maintained an Overweight rating and a $319 price target on Visa Inc. (NYSE:V) on January 29.

See also 10 Best Financial and Fintech ETFs To Buy and 10 Oversold Financial Stocks to Buy.