Jim Cramer’s Bold Predictions About These 10 Financial Stocks

4. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders In Q3 2024: 98

Date of Cramer’s Comments: 9-12-24

Performance Since Then: 14.34%

Bank of America Corporation (NYSE:BAC) is another mega-American bank. Its reliance on consumer banking has made the current high-interest-rate era one of the toughest. To understand how high rates affect it, consider Bank of America Corporation (NYSE:BAC)’s revenue for the nine months ending in September. During this period, 55% of its revenue came through net interest income which means that if rates stay higher for longer, then Bank of America Corporation (NYSE:BAC) might struggle to generate sufficient interest income due to slow loan demand but bear high deposit costs. However, its presence in investment banking and other markets diversifies the income statement and creates avenues for growth from capital markets. Since Cramer’s remarks, the only major share price driver was the election which saw Bank of America Corporation (NYSE:BAC)’s shares surge by 17%. Here’s what Cramer said:

“Okay, Warren, got this. I think Bank of America Corporation (NYSE:BAC) snaps back the moment we see that he’s sold so much that he can’t hurt it anymore. It holds up rather well, considering it sells at 11 times earnings. That’s the one we want to be in, and I like it.”