Jim Cramer is Talking About These 14 Stocks Before Earnings

4. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 92

Cramer talked about Warren Buffett’s move to sell Bank of America Corporation (NYSE:BAC) shares and how it can be helpful. Here’s what he said:

“Bank of America caught a big break today. Warren Buffett has sold so much Bank of America stock now that he’s under 10%, where he no longer has to report every time he sells stock. Well, that’ll help the stock immensely. Why? Because it wears you down to see that Warren Buffett sold some shares every few days. You never want to be on the other side of a Buffett trade, right? That said, Bank of America might have borrowed some of the upside today for next week because it was up 5%.”

Bank of America (NYSE:BAC) is a well-known financial institution that provides various banking and financial services to individual consumers, businesses, institutional investors, and government institutions across the globe. It offers essential products such as savings and checking accounts, various loan options, investment management services, and wealth management solutions.

In the second-quarter earnings report, Bank of America (NYSE:BAC) presented mixed results. Revenue remained relatively stable, with a slight increase of 1% to reach $25.4 billion. However, net interest income declined by 3% to $13.7 billion, and EPS dropped from $0.88 to $0.83. Despite these challenges, the company experienced growth in its lending activities, with loans rising modestly from the previous year to $1.05 billion. Average deposits also saw an increase of 2%, totaling $1.91 billion, indicating a strengthening balance sheet.

During the second-quarter earnings call, management highlighted that approximately $10 billion in securities mature each quarter, presenting an opportunity for reinvestment at rates 300 basis points higher.