5 Most Profitable Cheap Stocks to Buy Right Now

4. Bank of America Corporation (NYSE:BAC)

Forward P/E: 12.82

Profit Margin: 28.96%

Net Income Available to Common (TTM): $30.26 Billion

Number of Hedge Fund Holders: 106

Bank of America Corporation (NYSE:BAC) is one of the most profitable cheap stocks to buy right now. On June 30, Oppenheimer downgraded its rating on Bank of America Corporation (NYSE:BAC) from Outperform to Perform.

The research firm downgraded its rating on many US bank stocks, noting that rich valuations have left little room for further upside and that share prices already reflect much of the positive outlook for earnings and the overall business environment.

According to Oppenheimer, the banking sector has moved from years of structural undervaluation to valuations that now suggest optimism over sustained earnings growth. The firm pointed out that commercial banks are now trading near the high end of their historical valuation ranges, while investment banks are trading well above their long-term averages as investors expect strong investment banking activity and trading revenue.

Oppenheimer also raised its earnings estimates for the second quarter of 2026, pointing to better-than-expected trading performance. In addition, the firm increased its 2027 forecasts after raising its expectations for global investment banking activity. The brokerage now expects the investment banking “wallet” to reach about 46 basis points of US nominal GDP, which is estimated to be around 20% to 25% higher than a normal level.

Bank of America Corporation (NYSE:BAC) is a global banking and financial services corporation that offers banking, investing, asset management, and other financial and risk management products and services to individual consumers, small and middle-market businesses, and large corporations.