Jim Cramer’s Top 10 Stocks to Track for Potential Growth

3. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Investors: 92

Jim Cramer suggests that Bank of America Corporation (NYSE:BAC) is likely to rebound once it becomes clear that Warren Buffett has sold enough of his shares so that his selling no longer negatively impacts the stock. Cramer notes that Bank of America Corporation (NYSE:BAC) remains relatively strong despite Buffett’s sales, especially given that it is priced at 11 times earnings. He believes Bank of America Corporation (NYSE:BAC) is a stock worth considering and expresses his positive outlook on it.

“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.”

Bank of America Corporation (NYSE:BAC) is an attractive investment due to its strong performance in Q2 2024 and focus on operational efficiency. Bank of America Corporation (NYSE:BAC) reported a solid net income of $6.9 billion and an EPS of $0.83, exceeding expectations and demonstrating resilience despite economic challenges. Its diverse revenue streams, including wealth management, corporate banking, and digital channels—along with ongoing cost-cutting efforts, set the stage for continued growth. Analysts expect moderate revenue increases throughout 2024, supporting Bank of America Corporation (NYSE:BAC)’s investment potential and reinforcing its position as a promising investment opportunity.

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.”