5 Most Undervalued Blockchain Stocks To Buy According To Hedge Funds

3. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 97

P/E Ratio: 11.47

Bank of America Corporation (NYSE:BAC) ranks on our list of undervalued blockchain stocks because the company is positioned to invest in the blockchain payments industry.

Bank of America Corporation (NYSE:BAC)’s CEO Brian Moynihan last year said that the company has hundreds of blockchain patents. The executive noted that the bank can begin to deploy these technologies as the industry becomes mature.

In his prepared remarks for the Committee of Financial Services, US House of Representatives, Moynihan said

“We continue to evaluate applications of new technologies that have the potential to deliver value to our customer and clients, including distributed ledger technology (DLT) and blockchain. While Bank of America holds more than 60 blockchain patents and has used DLT within existing products, we still have not found a use case at scale.”

Bank of America Corporation (NYSE:BAC) is one of the most popular financial stocks among the elite hedge funds tracked by Insider Monkey. Out of the 920 hedge funds in Insider Monkey’s database, 97 hedge funds reported owning stakes in Bank of America Corporation (NYSE:BAC) at the end of the third quarter of 2022. The biggest stakeholder in Bank of America Corporation (NYSE:BAC) was Warren Buffett’s Berkshire Hathaway which had a $30.5 billion stake in the bank at the end of September 2022.

Ariel Investment made the following comment about Bank of America Corporation (NYSE:BAC) in its Q3 2022 investor letter:

“We initiated three new positions in the quarter. We added leading financial institution Bank of America Corporation (NYSE:BAC) which serves individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services. The current company was formed through various mergers including NationsBank, FleetBoston, US Trust, Countrywide Financial, and Merrill Lynch with the legacy commercial bank to form a national banking powerhouse and bulge bracket investment firm. As one of the ‘Big Four’ U.S. banks it enjoys scale driven cost advantages and economies of scale which provide meaningful competitive advantages and potential for strong returns in the largely commoditized banking industry. A survivor of the financial crisis, BAC has emerged with a solid capital base and stands to benefit from a rising interest rate environment.”