7 Best Bank Stocks To Buy in 2024

2. Bank Of America Corporation (NYSE:BAC)

Number of Hedge Fund Investors: 92

Following the 2008 financial crisis and years of problems, Bank Of America Corporation (NYSE:BAC) has become the second-biggest commercial bank in the United States in terms of total assets. The bank has a strong commercial banking franchise, is a Tier 1 investment bank, and ranks among the top four credit card issuers and acquirers in the US.  It is one of the best retail branch networks and overall retail franchises in the country and owns the Merrill Lynch franchise, which has grown into one of the top brokerage and advisory firms in the country.

The four main business segments of BAC are Global Wealth & Investment Management (GWIM), Global Banking, Global Markets, and Consumer Banking. Through business diversification, BAC lowers the risk associated with market and industry-specific downturns while offering a wide range of banking and nonbank financial services and products.

Since its introduction in 2024, the prominent bank’s virtual financial assistant, Erica, has supported both corporate and individual services for over two billion customers.

Bank Of America Corporation (NYSE:BAC) reported better-than-expected earnings for the second fiscal quarter 2024 due to strong performance in the investment banking division and strong net interest income. The earnings report caused the share price to rise by more than 5% YoY, hitting a high not seen since the beginning of FY 2022.

ClearBridge Value Equity Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its first quarter 2024 investor letter:

“We added several new positions during the quarter. Our largest new addition was Bank of America Corporation (NYSE:BAC), one of the world’s leading financial institutions, serving some 66 million consumer and small business clients across the U.S. as well as large corporations, financial institutions and governments globally. We believe that the interest rate pressure that Bank of America faced in early 2023 has subsided, and risks surrounding deposit outflows have abated, which should allow the company to improve its book value and capital growth as well as benefit from a rebound of capital markets activity.”

While potential rate cuts and increasing deposit costs could put pressure on future profitability, analysts think that the company’s growth potential is backed up by its strong revenue from trading and investment banking as well as its favorable net interest income projections.

BAC is one of the Best Bank Stocks To Buy in 2024 since it has promising growth potential. As seen by 19 analysts, BAC has a consensus Buy rating with an average price target of $42.39 and an upside potential of 5.61% from the current stock price.

Warren Buffett’s Berkshire Hathaway is the largest shareholder in the company, with 1,032,852,006 shares worth $41.08 billion.