10 Cheap S&P 500 Stocks to Invest in Now

2. Bank of America Corporation (NYSE:BAC)

Forward P/E Ratio as of January 12: 12.80

Number of Hedge Fund Holders: 111

Bank of America Corporation (NYSE:BAC) is one of the cheap S&P 500 stocks to invest in now. On January 7, TD Cowen raised the firm’s price target on Bank of America to $66 from $64 with a Buy rating on the shares. In its Q4 2025 earnings preview, TD Cowen adjusted its price targets for the banking group and forecasted solid results characterized by expanding balance sheets and favorable repricing trends. The firm pointed to durable tailwinds for 2026, including the anticipation of a more dovish Fed as the leadership transition approaches, which will act as a catalyst for bank stocks.

HSBC also upgraded Bank of America on the same day from Hold to Buy, while setting a price target of $50. The upgrade followed a recent pullback in the stock, which the firm viewed as a prime opportunity to invest in a market leader featuring a strong outlook for earnings and profitability at an attractive valuation. Furthermore, HSBC noted that BofA is currently trading at a historically wide discount compared to JPMorgan, based on consensus earnings estimates for the next 12 months.

However, Wolfe Research analyst Steven Chubak downgraded Bank of America Corporation (NYSE:BAC) to Peer Perform from Outperform on January 7.

Bank of America Corporation (NYSE:BAC), through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.