5 Best Holding Company Stocks To Invest In

3. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 97

Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company that provides banking and financial products and services to individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. On January 13, Bank of America Corporation (NYSE:BAC) reported a Q4 GAAP EPS of $0.85 and a revenue of $24.53 billion, outperforming Wall Street estimates by $0.08 and $360 million, respectively. It is one of the premier holding company stocks to invest in. 

On January 3, Barclays analyst Jason Goldberg maintained an Overweight rating on Bank of America Corporation (NYSE:BAC) but lowered the firm’s price target on the shares to $48 from $51. Similarly, Odeon Capital analyst Dick Bove upgraded the stock on January 10 to Buy from Hold with a $38.44 price target.

According to Insider Monkey’s data, Bank of America Corporation (NYSE:BAC) was part of 97 hedge fund portfolios at the end of the third quarter of 2022, compared to 99 in the last quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with more than 1 billion shares worth $30.5 billion. 

Ariel Investment made the following comment about Bank of America Corporation (NYSE:BAC) in its Q3 2022 investor letter:

“We initiated three new positions in the quarter. We added leading financial institution Bank of America Corporation (NYSE:BAC) which serves individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services. The current company was formed through various mergers including NationsBank, FleetBoston, US Trust, Countrywide Financial, and Merrill Lynch with the legacy commercial bank to form a national banking powerhouse and bulge bracket investment firm. As one of the ‘Big Four’ U.S. banks it enjoys scale driven cost advantages and economies of scale which provide meaningful competitive advantages and potential for strong returns in the largely commoditized banking industry. A survivor of the financial crisis, BAC has emerged with a solid capital base and stands to benefit from a rising interest rate environment.”