5 Best Stocks To Buy Before the 2023 Recession

2. 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 caters to individual consumers, small and middle-market businesses, institutional investors, large enterprises, and governments worldwide. Bank of America Corporation (NYSE:BAC) is one of the best stocks to buy for protection against an upcoming recession this year.  

On December 5, Bank of America Corporation (NYSE:BAC) announced that it will redeem all outstanding $6 billion of its 3.004% fixed/floating rate senior notes due 2023 on December 20. Redemption price will be equal to 100% of the principal amount of the notes, plus accrued and unpaid interest at the redemption date. 

Barclays analyst Jason Goldberg on January 3 maintained an Overweight rating on Bank of America Corporation (NYSE:BAC) but lowered the price target on the shares to $48 from $51. The analyst believes 2023 should see net interest margins peak for the large-cap banks, deposit betas rise, loan growth slow, and loan losses increase.

According to Insider Monkey’s data, 97 hedge funds were bullish on Bank of America Corporation (NYSE:BAC) at the end of Q3 2022, compared to 99 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the leading position holder in 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.”