5 Best Financial Services Stocks To Invest In Right Now

In this article, we will take a look at the 5 best financial services stocks to invest in right now. If you want to explore similar stocks, you can go to 10 Best Financial Services Stocks To Invest In Right Now.

5. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 100

This April, JPMorgan revised its price target on Bank of America Corporation (NYSE:BAC) to $34 from $38 and maintained an Overweight rating on the shares.

Bank of America Corporation (NYSE:BAC) is one of the best financial services stocks to buy now. As of April 14, the stock is trading at a PE multiple of 9x and is offering a forward dividend yield of 2.98%.

100 hedge funds held stakes in Bank of America Corporation (NYSE:BAC) at the end of the fourth quarter of 2022. The total value of these stakes amounted to $37.5 billion. As of December 31, Berkshire Hathaway is the top stockholder in the company and has a position worth $33.4 billion.

Oakmark Funds made the following comment about Bank of America Corporation (NYSE:BAC) in its Q1 2023 investor letter:

“The Oakmark Equity and Income Fund has 29% of its equity portfolio in financials. This made the March sell-off painful, but we do not believe that this has meaningfully changed the value of most of our financial equity holdings. In fact, we were adding to financial positions throughout March. We believe that one way to analyze our financial holdings is to look at them in different buckets given their various business models and risk profiles. Almost 30% of our financial exposure is in insurance companies and insurance brokers. Insurance companies have very stable liability profiles, so the main risk is a change in asset values. We are comfortable with their investment portfolios and think these stocks are quite attractive. Around 5% of our financials are asset managers. This leaves a little over 40% of the financials exposure in a varied group of banks and lenders. About 5% of that portfolio is in Bank of America Corporation (NYSE:BAC) and State Street. These two banks are designated as Systematically Important Financial Institutions and are held to higher regulatory standards. Our largest single financials holding is Bank of America, which has grown deposits during March, and we believe it is one of the best managed companies in the sector.”