Starter Stock Portfolio: 12 Safe Stocks to Buy

9. Bank of America Corporation (NYSE:BAC)

No. of Hedge Fund Holders: 113

Bank of America Corporation (NYSE:BAC) is a global financial institution offering a wide array of products and services across four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. It is among the best beginner stocks to invest in.

The banking sector is usually a safe bet for any portfolio. Investors would believe the Fed’s announcement to maintain interest rates at current levels would be beneficial, however, this also leads to reduced consumer spending due to rising inflation, which can negatively impact a bank’s performance. High interest rates can lead to high debt servicing by companies, leading to head-count reduction (aka unemployment). As a result, consumers are unable to make timely payments on their credit card bills, car loans, and mortgages, leading to higher NPLs.

Bank of America Corporation (NYSE:BAC) delivered solid financials for the fourth quarter of 2024, with revenue of $25.35 billion, beating estimates by $220.32 million. Its EPS came in at $0.82, narrowly beating estimates by $0.05. The net income amounted to $6.7 billion. For the full year 2024, the bank’s revenue was $102 billion, its net income of $27 billion, and its EPS came in at $3.21. The bank shared guidance for the upcoming quarter with revenue of $26.93 billion and an EPS of $0.82.

Bank of America Corporation (NYSE:BAC) has managed to weather not only the recent inflationary crisis of 2024 but also COVID-19. The stock has an upside of 50.43%, with a consensus among analysts of the average twelve-month trading price at $51.31.