5 Best Undervalued Stocks to Buy Now According to Billionaire DE Shaw

2. Bank of America Corp. (NYSE:BAC)

D.E. Shaw’s Stake Value: $516.1M

Percentage of  D.E. Shaw’s 13F Portfolio: 0.6%

Number of Hedge Fund Holdings: 99

PE Ratio (TTM): 10.89

Headquartered in Charlotte, North Carolina, the Bank of America Corp. (NYSE:BAC) is an American multinational investment bank and financial services holding company. It is the second largest banking institution in the United States, and the second largest bank in the world by total market capitalization. On July 19, RBC Capital analyst Gerard Cassidy lowered the price target on Bank of America Corp. (NYSE:BAC) to $40 from $45, keeping an Outperform rating on the shares.

Investor interest around Bank of America Corp. (NYSE:BAC) has virtually remained the same in Q2 2022, with 99 hedge funds long the stock in Q1 and Q2 2022. As of the second quarter of 2022, Warren Buffett’s Berkshire Hathaway is the largest shareholder in Bank of America Corp. (NYSE:BAC), having a stake worth $31.4 billion. D.E. Shaw comes in not far behind, owning more than 16.5 million shares which award him a stake of $516.1 million. Shaw strengthened his hold over the stock by 196%, causing Bank of America Corp. (NYSE:BAC) to make up for 0.6% of Shaw’s 13F investment portfolio for Q2 2022.

Here is what ClearBridge Investments had to say about Bank of America Corp. (NYSE:BAC) in their Q2 2022 investor letter:

“In the second quarter we made a sizable add to our position in Bank of America (NYSE:BAC) as our bank holdings have significant leverage to rising interest rates. The Fed, unfortunately, was late to realize inflation’s magnitude, maintaining for far too long that inflationary pressures were merely transitory. This mistake caused inflation to accelerate, necessitating a larger intervention than if the Fed had moved sooner.”