Jim Cramer is Talking About These 10 Stocks as Markets Rebound

3. Bank of America Corp (NYSE:BAC)

Number of Hedge Fund Investors: 82

Cramer in a latest program recommended a caller to buy Bank of America “right here,” saying:

“I think this company is selling very inexpensively and it’s a good one.”

Bank of America Corp (NYSE:BAC) recently posted strong-than-expected Q2 results and gave strong guidance for net interest income despite rate cut expectations.

Bank of America profited from rising interest rates by raising loan rates while delaying increases for depositors. Over the past two years, higher rates from the central bank boosted its net interest income significantly. In the second quarter of 2024 Bank of America Corp (NYSE:BAC) earned $13.9 billion in net interest income, a $300 million decrease from the previous quarter.

Bank of America Corp (NYSE:BAC) forecasts a $600 million increase in net interest income for 2024, despite expecting three interest rate cuts. This projected boost is expected to strengthen the bank’s financial position and sustain its bullish trend. The bank’s stock remains attractively valued with a positive risk/reward outlook.

A significant positive development for Bank of America Corp (NYSE:BAC) this year is the rise in investment banking fees, which increased 29% year-over-year in Q2, contributing 17.3% to net income. Continued growth in these fees is expected to further enhance the bank’s profitability.

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.”