In this article, we discuss the 5 financial services stocks to buy according to Nathan Przybylo’s L2 Asset Management. If you want to skip our detailed analysis of these stocks, go directly to 10 Financial Services Stocks to Buy According to Nathan Przybylo’s L2 Asset Management.
5. Morgan Stanley (NYSE:MS)
L2 Asset Management Stake Value: $1.4 million
Percentage of L2 Asset Management’s 13F Portfolio: 1.33%
No. of Hedge Fund Holders: 69
Morgan Stanley (NYSE:MS) is an investment bank and financial services corporation located in Midtown Manhattan, New York City. It ranks fifth on the list of 10 financial services stocks to buy according to Nathan Przybyla’s L2 Asset Management.
Based on latest security filings, L2 Asset Management holds 15,723 shares worth $1.4 million in Morgan Stanley (NYSE:MS). This represents 1.33% of the hedge fund’s 13F portfolio. At the end of the second quarter of 2021, 69 hedge funds in the database of Insider Monkey held stakes worth $5.3 billion in Morgan Stanley (NYSE:MS), down from 79 the preceding quarter worth $5 billion. With 15.5 million shares worth $1.4 billion, Eagle Capital Management is the firm’s leading shareholder.
In its Q2 2021 investor letter, ClearBridge Investments mentioned that Morgan Stanley (NYSE:MS) has been a leader in helping direct capital to address global sustainability challenges. Here is what ClearBridge Investments has to say about the company:
“The Strategy also benefited from strong showings from financials holdings such as recent addition Morgan Stanley, a leading bank holding company offering a variety of financial services worldwide, and one of the largest broker-dealers, investment banks and wealth managers in the U.S. Morgan Stanley has been a leader in helping direct capital to address global sustainability challenges. Its sustainability efforts include capital markets actions such as issuing green bonds and it was early in its support for sustainability in investing and its concern for the environment. Morgan Stanley reported a great quarter with record revenues and strength across the businesses as it works to integrate and find synergies with recent acquisition E*TRADE. Following stress tests for banks, Morgan Stanley increased its dividend and share repurchase plan more than expected.”
4. Bank of America Corporation (NYSE:BAC)
L2 Asset Management Stake Value: $1.6 million
Percentage of L2 Asset Management’s 13F Portfolio: 1.49%
No. of Hedge Fund Holders: 87
Bank of America Corporation (NYSE:BAC) represents 1.49% of Przybylo’s L2 Asset Management portfolio. The hedge fund decreased its activity in the firm by 36% in the second quarter of 2021. On October 11, investment advisory Jefferies kept a Hold rating on Bank of America Corporation (NYSE:BAC) and increased its price target to $48 from $41.
In the second fiscal quarter, Bank of America Corporation (NYSE:BAC) reported an EPS of $1.03, surpassing analyst estimates by $0.26. The company’s revenue in the second fiscal quarter came in at $21.47 billion, missing revenue estimates by $300 million.
At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $46.5 billion in Bank of America Corporation (NYSE:BAC), down from 97 the preceding quarter worth $45.3 billion.
ClearBridge Investments, in its Q1 2021 investor letter, mentioned that the firm believes Bank of America Corporation (NYSE:BAC) to be the least risky large bank from a credit standpoint: Here is what ClearBridge Investments has to say about the company:
“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”
3. Ameriprise Financial, Inc. (NYSE:AMP)
L2 Asset Management Stake Value: $1.9 million
Percentage of L2 Asset Management’s 13F Portfolio: 1.73%
No. of Hedge Fund Holders: 37
Ameriprise Financial, Inc. (NYSE:AMP) ranks third on the list of 10 financial services stocks to buy according to Nathan Przybylo’s L2 Asset Management. The company has a market cap of $32 billion and is headquartered in Minneapolis, Minnesota. This holding company offers a range of financial services.
Przybylo’s L2 Asset Management owns 7,530 shares worth $1.9 million in Ameriprise Financial, Inc. (NYSE:AMP), which makes up 1.73% of the hedge fund’s 13F portfolio. At the end of the second quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Ameriprise Financial, Inc. (NYSE:AMP), same as the preceding quarter worth $969.8 million.
2. JPMorgan Chase & Co. (NYSE:JPM)
L2 Asset Management Stake Value: $2 million
Percentage of L2 Asset Management’s 13F Portfolio: 1.93%
No. of Hedge Fund Holders: 108
In the second quarter of 2021, JPMorgan Chase & Co. (NYSE:JPM) reported an EPS of $3.78, beating estimates by $0.60. The company’s revenue in the second fiscal quarter came in at $30.5 billion, a decrease of $7.9% year over year, and beat analyst estimates by $790 million.
At the end of the second quarter of 2021, 108 hedge funds in the database of Insider Monkey held stakes worth $4.9 billion in JPMorgan Chase & Co. (NYSE:JPM), down from 111 the preceding quarter worth $5.2 billion.
In Its Q3 2021 investor letter, Vltava Fund mentioned that it considers JPMorgan Chase & Co. (NYSE:JPM) to be the strongest, largest and most profitable bank in the world. Here is what Vltava Fund has to say about the company:
“While all the previous names could be categorised as founder, continuing, or key shareholders, these last two names fall into the category of hired professional managers. This is actually the most numerous category among the bosses of large companies, but even among them there exist a number of individuals with exceptional long-term track records. In our view, these include also Jamie Dimon and Herman Gref.
We consider JP Morgan to be the strongest, largest, and most profitable bank in the world. It has not always been so, and the fact that it is what it is today can be attributed especially to its CEO Jamie Dimon. Dimon has spent his entire career in banking. He came to JP Morgan in a roundabout way in 2004 after the bank bought Bank One, of which he was CEO at the time. Since early 2006, Dimon has been CEO of the entire JP Morgan.
The quality and strength of JP Morgan under his leadership became fully apparent for the first time in 2008. Not only did JP Morgan help to stabilise the market by taking over the failing Bear Stearns in the spring of that year, but it was the only major US bank that did not require government assistance throughout the Great Financial Crisis and that was highly profitable even in the difficult year of 2008. Today, JP Morgan is even bigger, even more profitable, and even stronger than ever before. Many investors view banks with disdain, but a good bank with good management can be a very good long-term investment. From the time of its merger with Bank One in 2004 through the end of 2020, JP Morgan’s stock has outperformed even the S&P 500 index. The bank has earned a total net profit of USD 330 billion during this period, of which USD 232 billion has been paid out to shareholders in dividends and in share buybacks. I can recommend two books about Jamie Dimon: The House of Dimon and Last Man Standing.”
1. Synchrony Financial (NYSE:SYF)
L2 Asset Management Stake Value: $2.5 million
Percentage of L2 Asset Management’s 13F Portfolio: 2.29%
No. of Hedge Fund Holders: 39
According to latest security filings, Przybylo’s L2 Asset Management owns 50,923 shares worth $2.5 million in Synchrony Financial (NYSE:SYF). This represents 2.29% of the hedge fund’s 13F portfolio. In the second quarter of 2021, Synchrony Financial (NYSE:SYF) reported an EPS of $2.12, beating estimates by $0.72. The company’s revenue of $3.4 billion beat the estimates by $800 million and presented a 2.6% year over year decline.
On September 10, investment advisory Credit Suisse kept an Outperform rating on Synchrony Financial (NYSE:SYF) stock and increased the price target to $63 from $59, appreciating the company’s long-term financial targets.
At the end of the second quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Synchrony Financial (NYSE:SYF), down from 49 the preceding quarter worth $1.9 billion.
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