11 Best Undervalued Stocks to Invest in Now

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1. Bank of America Corporation (NYSE:BAC)

Forward P/E Ratio: 12.49 

Earnings Growth This Year: 14.99% 

Number of Hedge Fund Holders: 113

Bank of America Corporation (NYSE:BAC) is a financial institution that operates through several main segments including Consumer Banking, Global Wealth and Investment Management, Global Banking, and Global Markets.

During the fiscal fourth quarter of 2024, Bank of America Corporation (NYSE:BAC) reported a solid financial performance. Its revenue increased $22 billion last year to $25.3 billion. Whereas the net income grew more than double to reach $6.7 billion. Management noted that they continue to grow their client base and added 213,000 new consumer checking accounts, marking a streak of quarterly growth to six years. On February 18, David Konrad from KBW maintained a Buy rating on the stock with a price target of $59. It is the best-undervalued stock to invest in now and was held by 113 hedge funds in Q4 2024.

Diamond Hill Large Cap Strategy stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q2 2024 investor letter:

“Other top contributors in Q2 included Bank of America Corporation (NYSE:BAC) and Extra Space Storage. Shares of financial services company Bank of America rose in the quarter as it looks increasingly likely net interest income will inflect and begin growing again in 2024’s back half and into 2025.”

While we acknowledge the potential of Bank of America Corporation (NYSE:BAC) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BAC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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