5 Best Large-Cap Value Stocks To Buy

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 91
P/E Ratio as of June 24: 8.38

An American investment bank and financial services company, Bank of America Corporation (NYSE:BAC);s stock has a price-to-earnings ratio of 8.38. In the first quarter of 2023, the company registered a revenue of $26.3 billion, up by 13.4% on the year. Its net interest income for the quarter came in at $14.4 billion.

At the end of Q1 2023, 91 hedge funds owned stakes in Bank of America Corporation (NYSE:BAC), according to our data. The total value of these stakes is over $31.7 billion.

Artisan Partners discussed reasons to invest in Bank of America Corporation (NYSE:BAC) in its Q1 2023 investor letter. Here is what the firm has to say:

“At the end of Q1, we had an ~7% weighting in banks consisting of PNC, US Bancorp and Bank of America Corporation (NYSE:BAC). All 3 are among the 10 largest US banks. We believe the range of probabilities and long-term outcomes are tilted in our favor at current prices but are proceeding with caution for several reasons. First, while we believe deposit-runs have likely burned themselves out, there is a non-zero risk these runs spread wider than our base case. Second, we expect more regulation in coming years which will increase the cost of doing business, potentially in exchange for higher FDIC limits. Third, at the very least we expect banks to cease buybacks for the rest of the year to build up liquidity and capital ratios. There is an increasingly more likely outcome that banks issue equity capital and preferred stock once markets stabilize. Fourth, with the banking system in shock, it will likely retrench, which will constrict capital to the US economy. Coupled with the “long and variable lags” of Fed policy, this will slow US economic growth beyond what private credit markets can make up.”