7 Undervalued Blue Chip Stocks To Buy Right Now

4. Bank of America Corporation (NYSE:BAC)

Analyst Upside Potential: 15.28%

Forward P/E, as of September 24: 11.07

Number of Hedge Fund Holders:  92

Ranking 4th in our list of the 7 undervalued blue chip stocks to buy right now is Bank of America Corporation (NYSE:BAC). The company’s Q2 2024 earnings demonstrated strength, with net interest income growing by 13%, largely due to higher interest rates. Although rising deposit costs created some pressure on its consumer banking unit, Bank of America Corporation (NYSE:BAC)’s diversified revenue streams helped offset this.

Despite some pressures from rising deposit costs, Bank of America Corporation (NYSE:BAC)’s diversified business model mitigates risks and supports resilience across its various segments, including wealth management and investment banking. Bank of America Corporation (NYSE:BAC)’s investment banking and capital markets division demonstrated strong performance even in challenging market conditions, further solidifying its competitive advantage.

As interest rates stabilize, Bank of America Corporation (NYSE:BAC) is well-positioned to benefit from operational efficiencies, a solid balance sheet, and an increase in lending activity. With a forward P/E ratio of 11.07 and a market capitalization of $305.9 billion, Bank of America Corporation (NYSE:BAC) appears attractively valued compared to peers. Additionally, Bank of America Corporation (NYSE:BAC)’s ongoing focus on technology and digital banking enhances customer experience and drives cost efficiencies.

Overall, Bank of America Corporation (NYSE:BAC)’s strong financials, diversified revenue sources, and strategic initiatives make it a compelling choice for investors seeking exposure to a leading financial institution poised for continued growth.