5 Cheap Beginner Stocks to Buy

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1. Bank of America Corporation (NYSE:BAC)

PE Ratio (TTM) as of March 28: 8.82

Number of Hedge Fund Holders: 100

Bank of America Corporation (NYSE:BAC) is the best cheap stock to buy now according to hedge funds. As of March 28, the stock has a TTM PE ratio of 8.82 and is offering a forward divided yield of 3.13%.

On March 24, RBC Capital analyst Gerard Cassidy updated his price target on Bank of America Corporation (NYSE:BAC) to $34 from $40 and maintained an Outperform rating on the shares.

At the end of Q4 2022, 100 hedge funds were long Bank of America Corporation (NYSE:BAC) and disclosed positions worth $37.5 billion in the company. Of those, Berkshire Hathaway was the leading investor in the company and disclosed a position worth $33.4 billion.

Here is what Ariel Investments had to say 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.”

Follow Bank Of America Corp (NYSE:BAC)

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