13 Best Cheap Stocks to Invest in for Beginners

3. Bank of America Corporation (NYSE:BAC)

Forward P/E: 11.92

Number of Hedge Fund Holders: 113

Bank of America Corporation (NYSE:BAC) is a bank and financial holding company that operates in the Consumer Banking, Global Wealth and Investment Management (GWIM), Global Banking, and Global Markets segments. The company boasts a wide economic moat and reliable competitive market advantages that reduce its chances of operational disruption, ranking it among the best cheap stocks to invest in for beginners.

On May 13, Wells Fargo analyst Mike Mayo maintained a Buy rating on Bank of America Corporation (NYSE:BAC) with an associated price target of $56.00. The analyst supported his rating with the company’s growth potential and strong operational performance, saying that it is maintaining a steady course with its commercial and consumer operations.

Bank of America Corporation (NYSE:BAC) is also exhibiting resilience amid macroeconomic uncertainties such as tariffs, which can be seen in its ability to expand its loan demand and core client base. This is further supported by positive commercial borrowing trends and consumer spending. The analyst expects Bank of America Corporation (NYSE:BAC) to undergo significant EPS and net interest income growth over the coming years, supported by its growth initiatives and strategic investments. These initiatives include improving business banking opportunities, growing customer programs, and tapping into new markets.