In order to improve our community experience, we are temporarily suspending article commenting, Want $1 Million in Retirement? Bank of America is holding a Zacks Rank of #3 (Hold) right now. President Xi Jinpings government is officially committed to stopping virus transmission, the last major country to try. Investors interested in stocks from the Banks - Major Regional sector have probably already heard of Citigroup (C) and Bank of America (BAC). Goldman Sachs (GS) thinks that theres a 35% chance of a recession next year, which is below the 65% average estimate from Wall Street Journals surveyed forecasters. You're growing the loan portfolio by 4% when everyone else was at 1% or 2%. In this article we are going to use hedge fund sentiment as a tool and determine whether Bank of America Corporation (NYSE:BAC) is a good investment right now. It's worth mentioning that Robert Pitts's Steadfast Capital Management dropped the largest stake of the "upper crust" of funds watched by Insider Monkey, totaling about $194 million in stock. It was followed by Viking Global with a $1211.5 million position. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. We still like this investment. Our overall hedge fund sentiment score for BAC is 52.6. We developed the Zacks Rank to capitalize on this phenomenon. The Price to Sales ratio or P/S is calculated as price divided by sales. Sorry, no results has been found matching your query. This is basically a recipe to generate better returns than Warren Buffett is achieving himself. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.44 billion, up 10.81% from the year-ago period. Passed CFA Level 1. Scenarios in which we get 0.4% full year growth while also having a severe recession imply an extremely high standard deviation of quarterly growth rates. 2 and 10 year treasuries. 1 Warren Buffett ETF I'm Stocking Up On Before the End of 2022, 2 Stocks Down 19% to 51% to Buy Right Now. Invest $100,000 in These 2 Stocks and Relax for a Decade, 2 Big Bank Stocks With Unused Pandemic Reserves Id Buy This Year-End, 2 Dividend Heavyweights to Help Your TFSA Soar in 2023, 3 Dividend Stocks That Could Pay You the Rest of Your Life, 5 Stocks You Can Confidently Invest $500 in Right Now, Here are 5 reasons why the US could be in a recession by March, according to Bank of America. In terms of the portfolio weights assigned to each position Aquamarine Capital Management allocated the biggest weight to Bank of America Corporation (NYSE:BAC), around 15.52% of its 13F portfolio. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Jason Moser: Let's go ahead and wrap it up. "(But) we're sti. Our calculations also showed that BAC ranked 24th among the 30 most popular stocks among hedge funds (click for Q1 rankings). The Washington-based retail warehouse has over 795 locations worldwide. They're not quite at the JPMorgan Chase level, but I see them getting to equal footing before too long. Just running through some of the numbers that really stood out to me, well, one, their charge-off ratio declined from the second quarter to the third, which is definitely an encouraging sign. View table here if you experience formatting issues. Due to the fact that Bank of America Corporation (NYSE:BAC) has experienced a decline in interest from the aggregate hedge fund industry, its safe to say that there lies a certain tier of money managers that decided to sell off their full holdings by the end of the first quarter. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. A false breakout in March has been followed by disappointing price action. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. I have no business relationship with any company whose stock is mentioned in this article. Having looked at various risks and opportunities facing Bank of America in Q4, its time to answer the question I started the article with: Put simply, because Bank of America stock is cheap, and its growing at a decent pace if you exclude PCLs. Deposit portfolio gives you more capital to lend. Get our editors daily picks straight in your inbox! Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be January 13, 2023. Today, you can download 7 Best Stocks for the Next 30 Days. In Asia, the central bank of The Philippines is expected follow the Fed and reduce the pace of rate hikes to 50 bps from 75 bps at its last meeting, and policymakers in Taiwan are expected to deliver another 12.5 bps hike. "Best hedge for both base case and 2023 risk scenario for the moment is Treasuries and boring stocks with strong balance sheets," BofA said. Stock Lists NYSE:BAC Bank of America - BAC Price Target & Analyst Ratings $33.00 -1.47 (-4.26%) (As of 12/6/2022 04:33 PM ET) Add Compare Share Today's Range $32.40 $34.68 50-Day Range $29.77 $38.41 52-Week Range $29.31 $50.11 Volume 83.13 million shs Average Volume 47.16 million shs Market Capitalization $264.74 billion BAC is expecting earnings to expand this It might come to be that the expected defaults materialize, but it might not come to be. This article was originally published at Insider Monkey. The treasury yield curve is now fully inverted, with all maturities having higher yields than the 10 year. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. This can be seen clearly by looking at Charles Schwabs (SCHW) results. Now, its possible that well get something totally unlike the forecast. Well, for one thing, BACs shift in focus towards the digital space seems to be benefiting the company. But now they hardly go there anymore because it closes too early. So far, Bank of America hasnt faced a ton of pressure from yield curve inversion. There are many reasons to believe that BAC is a good stock to invest in. you absolutely must consider buying one particular type of investment right now. Thats much better than what conventional banks are doing on average, but Bank of America has its own brokerage segment, Merrill Lynch, where Merrill Edge assets are up 32%. Bank of Nova Scotia is a blue-chip dividend-paying stock trading on the TSX. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. He launched his hedge fund in 1956 with $105,100 in seed capital. Click to get this free reportCitigroup Inc. (C) : Free Stock Analysis ReportBank of America Corporation (BAC) : Free Stock Analysis ReportTo read this article on Zacks.com click here. So, lets check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Bank of America Corporation (NYSE:BAC) was held by Berkshire Hathaway, which reported holding $39080.8 million worth of stock at the end of December. Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. How to Best Use Insider Monkey To Increase Your Returns, Chinese consumers wary of splurging after COVID strictures fall, UPDATE 1-Soccer-Chelsea on top after nervy win, Manchester derby ends in a draw, Zelenskiy thanks Biden for 'unprecedented' help to Ukraine, UPDATE 1-Nitro Software recommends higher $358 mln bid from KKR-backed Alludo, Tokyos Broken Bond Market Needs More Than BOJ Tweaks to Heal. WebThe Best Warren Buffett Stocks to Buy With $300 Right Now. There were 99 hedge funds in our database with BAC positions at the end of the fourth quarter. Disclosure: None. I have no business relationship with any company whose stock is mentioned in this article. Today, it trades at 10.25 times earnings and 1.08 times book value. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. This is particularly relevant to Bank of America, because banks dont fare well in recessions. To read this article on Zacks.com click here. Bank of America is also a much more even mix of investment banking and consumer banking, which I really like, because in times like this, it really helps boost their revenue. We will take a look at The Procter & Gamble Company (NYSE:PG), NVIDIA Corporation (NASDAQ:NVDA), The Home Depot, Inc. (NYSE:HD), Paypal Holdings Inc (NASDAQ:PYPL), Intel Corporation (NASDAQ:INTC), ASML Holding N.V. (NASDAQ:ASML), and Comcast Corporation (NASDAQ:CMCSA). The Motley Fool has a disclosure policy. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. AAII can help you figure You can enter your email below to get our FREE report. Right now, Bank of America's payout ratio is 25%, which means it paid out 25% of its trailing 12-month EPS as dividend. That year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. Thats why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. So, how did Warren Buffett manage to generate high returns and beat the market? View table hereif you experience formatting issues. While most Americans want to put 2020 behind them. Matt Frankel: They had their second-best investment banking quarter ever. However, scenario 1, in which you get 0.4% GDP growth after wild variance, is extremely improbable. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. Something like this could happen, but then there wouldnt be a recession, as the consensus implies. . Our overall hedge fund sentiment score for BAC is 52.6. Two big bank stocks with unused pandemic reserves are excellent buys this year-end if you anticipate a recession in 2023 and want stability. Turn $6,500 Into $33 Each Month in 2023 appeared first on The Motley Fool Canada. For the full year, our Zacks Consensus Estimates are projecting earnings of $3.19 per share and revenue of $94.93 billion, which would represent changes of -10.64% and +6.53%, respectively, from the prior year. Berkshire Hathaway is also relatively very bullish on the stock, dishing out 14.45 percent of its 13F equity portfolio to BAC. This represents a premium compared to its industry's average Forward P/E of 10.21. I wrote this article myself, and it expresses my own opinions. Thats very cheap. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels. Actually Warren Buffett failed to beat the S&P 500 Index in 1958, returned only 40.9% and pocketed 8.7 percentage of it as fees. If the P/S ratio is 1, that means If GDP grows .04%, then it reaches $10,040 in 2023. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. KeyCorp (KEY) : Free Stock Analysis Report, Bank of America Corporation (BAC) : Free Stock Analysis Report. They beat expectations. When the economy improves, it will be able to release some of its reserves, and earnings should rise. But even if Bank of America doesnt grow its earnings, it will still be a decent value. WebThe Best Stocks To Buy Right Now Top Rated Stocks The following stocks have achieved a rare feat by holding a current POWR Rating of A. In the current one, even the 1 month bill has a higher yield than the 10 year bond. Bank of America Corporation (NYSE:BAC) is not the most popular stock in this group but hedge fund interest is still above average. These recent revisions tend to reflect the evolving nature of short-term business trends. There arent that many scenarios in which GDP grows 0.4% for the full year but a deep recession occurs in the interim. We also note that KEY has a PEG ratio of 0.65. the day and with good trading volume, the risk is considered to be medium. Finally. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. So the consumer deposits were up 21% year over year. Tech and dividend growth. The stock remains cheap even if we assume a severe recession hits and causes earnings and other metrics to decline to 2020 levels (that is, the levels seen during the COVID lows). Like classic value plays as well as GARP-y tech stocks. For example, advertising technology one of the fastest growing industries right now, so we are checking out stock pitches like this under-the-radar adtech stock that can deliver 10x gains. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an Most likely, BAC underperformed because some news items (e.g. *Stock Advisor returns as of October 20, 2020. 65% of economists say that there will be a recession, and their average forecast is 0.4% growth for the full year. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. At first quarters end, a total of 97 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -2% from one quarter earlier. Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). On the other hand ASML Holding N.V. (NASDAQ:ASML) is the least popular one with only 35 bullish hedge fund positions. Last week, Bank of America ( NYSE: BAC) crashed 10%, as a slew of bad news reports rocked the financial services sector. Whether or not you should buy Bank of America Corp stock will ultimately depend on your individual goals, risk tolerance and allocation. Today, you can download 7 Best Stocks for the Next 30 Days. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds picks dont beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk. Please disable your ad-blocker and refresh. The post Want Tax-Free Passive Income? Don't spend a lot. Most savers can afford to wait a month until maturity: thats just two pay periods for most people. KEY currently has a forward P/E ratio of 9.52, while BAC has a forward P/E of 13.87. Investors interested in stocks from the Banks - Major Regional sector have probably already heard of KeyCorp (KEY) and Bank of America (BAC). Let's take a closer look. Below, you can check out the change in hedge fund sentiment towards BAC over the last 23 quarters. Chaikin, who has appeared numerous times on CNBCs Fast Money, says that you absolutely must consider buying one particular type of investment right now, before its too late. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. For the last week, the stock has had daily average volatility of 7.05% . "Growth at a reasonable price" investor. It's typically categorized as a valuation metric and is most often quoted as Cash Flow per Share and as a Price to Cash flow ratio. October 5, 2022 | Adam Othman . The yield curve is certainly more inverted now than it was earlier this year, but thats not the end of the world. And even before the pandemic, out of the big four, Bank of America was putting up the best growth numbers consistently. What the quote that stood out to me on the call, because this really tells you what's on his mind, where he's thinking. Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). Back then they werent called hedge funds, they were called partnerships. They trade for a significantly lower price-to-book multiple than, say, a JPMorgan Chase (JPM -0.54%). Cannabis stocks like Canopy Growth (TSX:WEED) are struggling, but there are positives to draw on as well. 14 Wall Street analysts covering (NYSE: BAC) stock is to Buy BAC stock. Jason Moser has no position in any of the stocks mentioned. Last week, Bank of America (NYSE:BAC) crashed 10%, as a slew of bad news reports rocked the financial services sector. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. A massive and surprising new transition could determine the next group of millionaires, says Chaikin, who predicted the 2020 market crash. With short term treasuries offering so much yield, Bank of America may face pressure to up its savings account interest. What does Bank of America think will happen? Bank of America has a "buy" rating and a $100 price target for C stock, which closed at $60.63 on Dec. 14. S&P 500 Index lost 10.8% in 1957, so Buffetts investors actually thrilled to beat the market by 20.1 percentage points in 1957. But which of these two stocks presents investors with the better value opportunity right now? First, the yield curve reached its deepest Leon says the bank has a high-quality consumer credit card customer base, which will help reduce risk in the event of a recession. He anticipates "significantly higher" net interest income, or NII, growth in 2023. CFRA has a "buy" rating and $39 price target for BAC stock, which closed at $34.88 on Oct. 18. Seemingly everybody thinks a recession is coming, and some think that the coming recession will be severe. Is BAC A Good Investment Right Now?is BAC a good stock to buyNYSE:BACSentiment Score Between 50 and 60Yahoo Finance, Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. Then, Brian Moynihan said that investment banking fees would decline 60% in the fourth quartertheyd been declining prior to that, but -60% would be the worst decline this year. The top stocks in the Russell 1000 are Azenta Inc. for best value, Coterra Energy Inc. for fastest growth, and Occidental Petroleum Corp. for most momentum. Bank of America Corporation (NYSE:BAC) was in 97 hedge funds portfolios at the end of the first quarter of 2021. Let's take a closer look. Bank of America is pretty cheap right now, with a price-to-earnings ratio of about 10, down from 17 a year ago, and a price-to-book ratio right around 1, down from 1.7 That means that the impact of COVID isn't going to be quite what they thought it was going to be. We initially share this idea in October 2018 and the stock already returned more than 150%. The negative growth in earnings was entirely due to the reserve build. Marcio Appels fund, Adam Capital, also said goodbye to its stock, about $119.8 million worth. BAC currently has a PEG ratio of 1.78. Moynihans comment) dealt with the company itself, while the other big banks were only indirectly affected. I can't time the market at all so I am buying cheap stocks. I like Bank of America. Hedge funds were rewarded for their relative bullishness. Bank of America Corporation (NYSE:BAC) has experienced a decrease in hedge fund sentiment lately. Like I said, there are loan-loss trends, what's going on in the investment banking business, whether their interest income is holding up OK or not, and growth. It's just a really strong quarter on the investment side of the business, and they earned more than enough to cover their dividend. The largest stake in Bank of America Corporation (NYSE:BAC) was held by Berkshire Hathaway, which reported holding $39080.8 million worth of stock at the end of December. According to Wall Street legend Marc Chaikin, life is about to get even stranger, and it could have a sizable impact on your wealth. Please. Are you looking for stocks that could pay you for the rest of your life? It awaits a ruling on the request for another preliminary injunction filed on Dec. 1 by the California, Illinois and District of Columbia Attorneys General against the previously announced $6.85 per share dividend, according to a statement. People don't understand Goodyear. Berkshire Hathaway is also relatively very bullish on the stock, dishing out 14.45 percent of its 13F equity portfolio to BAC. Should You Invest in Bank of America (BAC)? In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 10.27. We also note that C has a PEG ratio of 0.45. Finally, Blackstone (BX) saw a wave of withdrawals from one of its REITs, leading investors to question the health of big institutions. Its unfortunate for Bank of America that this is happening, but as mentioned earlier, its only 4.8% of the total business. These stocks gained 17.2% in 2021 through June 11th and still beat the market by 3.3 percentage points. In its most recent quarter, Bank of America reported 24% growth in net interest income (NII,) despite the 2/10 year spread being negative at the time. Cost basis and return based on previous market day close. Due to the fact that Bank of America Corporation (NYSE:BAC) has experienced a decline in interest from the aggregate hedge fund industry, it's safe to say that there lies a certain "tier" of money managers that decided to sell off their full holdings by the end of the first quarter. With all of this in mind we're going to take a gander at the fresh hedge fund action regarding Bank of America Corporation (NYSE:BAC). Both KEY and BAC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KEY is the superior value option right now. During the last day, the ETF moved $0.542 between high and low, or 0.711%.For the last week the ETF has had daily average volatility of 1.16%.. Our recommended stop-loss: $72.48 (-5.08%) (This ETF has low daily The post 5 Things to Know About Cannabis Stocks Before 2023 appeared first on The Motley Fool Canada. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PG,70,8539030,-13 NVDA,80,6204940,-8 HD,68,4359872,-11 PYPL,143,14717163,-4 INTC,83,7616792,11 ASML,35,3827143,5 CMCSA,88,9762151,4 Average,81,7861013,-2.3 [/table]. In its most recent quarter, BAC increased loan loss provisions by $1.5 billion, indicating that it expects an increase in defaults. Hedge funds were also right about betting on BAC as the stock returned 8.6% since the end of Q1 (through 6/11) and outperformed the market. Our calculations also showed that BAC ranked 24th among the 30 most popular stocks among hedge funds (click for Q1 rankings). On the other hand ASML Holding N.V. (NASDAQ:ASML) is the least popular one with only 35 bullish hedge fund positions. Both C and BAC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that C is the superior value option right now. The yields on term deposits are going up, but theyre still lower than mortgage rates, and savings accounts still pay almost nothing. For comparison, BAC has a P/B of 1.52. I should be teaching them kids how to work with the environment, not fight for it." Investors interested in stocks from the Banks - Major Regional sector have probably already heard of Citigroup (C) and Bank of America (BAC). 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