5 Financial Services Stocks to Buy According to Nathan Przybylo’s L2 Asset Management

4. Bank of America Corporation (NYSE:BAC)

L2 Asset Management Stake Value: $1.6 million

Percentage of L2 Asset Management’s 13F Portfolio: 1.49%

No. of Hedge Fund Holders: 87

Bank of America Corporation (NYSE:BAC) represents 1.49% of Przybylo’s L2 Asset Management portfolio. The hedge fund decreased its activity in the firm by 36% in the second quarter of 2021. On October 11, investment advisory Jefferies kept a Hold rating on Bank of America Corporation (NYSE:BAC) and increased its price target to $48 from $41.

In the second fiscal quarter, Bank of America Corporation (NYSE:BAC) reported an EPS of $1.03, surpassing analyst estimates by $0.26. The company’s revenue in the second fiscal quarter came in at $21.47 billion, missing revenue estimates by $300 million.

At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $46.5 billion in Bank of America Corporation (NYSE:BAC), down from 97 the preceding quarter worth $45.3 billion.

ClearBridge Investments, in its Q1 2021 investor letter, mentioned that the firm believes Bank of America Corporation (NYSE:BAC)  to be the least risky large bank from a credit standpoint: Here is what ClearBridge Investments has to say about the company:

“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.”