8 Best Inexpensive Stocks To Invest In Now

3. Bank of America Corp. (NYSE:BAC)

Forward Price-to-Earnings Ratio: 10.95

Market Cap as of September 26: $304.52 billion

Number of Hedge Fund Holders: 92

Bank of America Corp. (NYSE:BAC) is a multinational investment bank and financial services holding company that offers a range of banking products and services, including commercial banking, retail banking, wealth management, investment banking, and global markets. It is one of the largest banks in the US and operates in several countries around the world.

This is a leading US financial institution with 69 million customers, 3,800 retail locations, and 15,000 ATMs. It added 278,000 new checking accounts in Q2 2024, bringing its 2024 total to 500,000. Wealth management added 6,100 new relationships and commercial banking added thousands of small businesses. Bank of America Corp. (NYSE:BAC) manages $5.7 trillion in client balances.

The company reported strong Q2 2024 earnings, driven by higher interest rates. While rising deposit costs impacted consumer banking, its diversified revenue streams mitigated these pressures. The investment banking and capital markets division performed well despite challenging market conditions. The bank’s focus on technology and digital banking enhances customer experience and drives efficiencies.

Overall, revenue for the second quarter was $25.38 billion, up 0.71% year-over-year. Fees grew 6% year-over-year and represented 46% of total revenue. Car and Service charge revenue grew by 6%. 87% of global banking clients also are digitally active. This is especially important because in the second quarter, digital sales represented 53% of the total sales.

This company presents a compelling investment opportunity. Its strong financial performance, coupled with a diversified revenue stream and strategic initiatives, positions it for continued growth. As the economy expands, the bank is poised to benefit from increased credit card spending, loans, and business borrowing.

Diamond Hill Large Cap Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q2 2024 investor letter:

“Other top contributors in Q2 included Bank of America Corporation (NYSE:BAC) and Extra Space Storage. Shares of financial services company Bank of America rose in the quarter as it looks increasingly likely net interest income will inflect and begin growing again in 2024’s back half and into 2025.”