5 Best Stocks Under $50

1. Bank of America Corporation (NYSE: BAC)

Number of Hedge Fund Holders: 97

Bank of America Corporation (NYSE: BAC) is a provider of banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments. The company operates globally and ranks 1st on our list of the best stocks under $50.

This June, Bank of America Corporation (NYSE: BAC) announced plans to increase its quarterly common stock dividend by about 17% for the third quarter of 2021, and being a regular dividend yielder with a 1.75% dividend yield, it can be a good option for income investors as well.

In light of the Federal Reserve’s stress tests, Bank of America Corporation (NYSE: BAC) was among the bank stocks witnessing notable gains and led other financials stocks this June. In the first quarter of 2021, Bank of America Corporation (NYSE: BAC) had an EPS of $0.86, beating estimates by $0.21. The company’s revenue was $22.82 billion, beating estimates by $959.56 million. The stock has also gained 27.99% in the past 6 months and 37.03% year to date, and it has a forward PE ratio of 13.56.

As of the end of the first quarter of 2021, 97 hedge funds out of the 866 tracked by Insider Monkey held stakes in Bank of America Corporation (NYSE: BAC), with a total stake value of about $45.3 billion. This is compared to 99 hedge funds in the previous quarter, with a total stake value of roughly $35.3 billion.

ClearBridge Investments, an investment management firm, mentioned Bank of America Corporation (NYSE: BAC) in its first-quarter 2021 investor letter. Here’s what they said:

“Higher long-term interest rates supported financials such as Bank of America, which has shown both defensive and offensive characteristics in the past year. We believe it continues to be the least risky large bank from a credit standpoint, with conservative underwriting and controlled risk taking, a leading consumer deposit franchise, scale and technology. It is also a leader in its commitments to sustainability, or as it terms it, responsible growth. Disclosure and reporting at all levels form a large part of this commitment, including gender diversity and equality, environmental commitments and support of communities in which it operates. In the first quarter Bank of America announced it is setting a goal of net-zero greenhouse gas (GHG) emissions in its supply chain and operations, and notably also in its financing activities, before 2050.”

You can also take a look at 10 Cheap Stocks To Invest In (February 2021) and 10 Best Cheap Stocks To Buy Now.

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