Diamond Hill Capital Stock Portfolio: Top 10 Stock Picks

4. Bank of America Corporation (NYSE:BAC)

Diamond Hill Capital’s Stake Value: $677.7 million

Number of Hedge Fund Holders: 113

Baird analyst David George upgraded Bank of America Corporation (NYSE:BAC)’s stock from “Neutral” to “Outperform,” increasing the price objective to $50.00 from the previous target of $45.00. The upgrade demonstrated the firm’s confidence in the company’s financial prospects. The analyst highlighted the strength of Bank of America Corporation (NYSE:BAC)’s deposit franchise, relatively low credit risk, and consistent execution, together with strong markets businesses. Elsewhere, Fitch Ratings noted the company’s diversified business mix, leading market position, prudent liquidity management, and disciplined risk management.

Bank of America Corporation (NYSE:BAC)’s market position remains robust as it continues to leverage its vast network and diverse service offerings in a bid to maintain a competitive edge. Its capability to gain deposit market share as well as to benefit from a recovery in capital markets activity are being regarded as the key advantages. Also, Bank of America Corporation (NYSE:BAC) remains well-placed to capitalize on numerous growth opportunities. The expected recovery in capital markets activity can fuel its investment banking and trading revenues.

Diamond Hill Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Other top Q4 contributors included Bank of America Corporation (NYSE:BAC), Parker-Hannifin and Labcorp. Banking and financial services company Bank of America benefited from broadly improved sentiment around banks as the market anticipates lower regulatory pressures under the incoming presidential administration. Shares also received a sentiment boost from growing optimism for better loan growth in the period ahead.”