5 Stocks To Buy Now According To Stamos Capital

4. Bank of America Corporation (NYSE:BAC)

Stamos Capital’s Stake Value: $6.87 million
Percentage of Stamos Capital’s 13F Portfolio: 3.62%
Number of Hedge Fund Holders: 87

Bank of America Corporation (NYSE:BAC) is a multinational bank and financial services holding company based in North Carolina. Founded in San Francisco, it is one of the worlds largest financial institutions.

On October 11, Jefferies analyst Ken Usdin raised his price target on Bank of America Corporation (NYSE:BAC) to $48 from $41, and kept a Hold rating on the shares.

Oakmark Funds, in its Bill Nygren third-quarter 2021 market commentary, mentioned Bank of America Corporation (NYSE:BAC). Here is what the fund said:

“Earlier this year, one of our holdings, Bank of America, announced that it was raising its minimum hourly wage from $15 to $20 and would increase it to $25 by 2025. The company received great press for placing the well-being of its employees above profits. But was it really either/or? Bank of America’s chief human resources officer spoke to the bigger picture: “A core tenet of responsible growth is our commitment to being a great place to work…that includes providing strong pay and competitive benefits to help them and their families, so that we continue to attract and retain the best talent.” Bank of America understood that engaged, high-caliber employees are more productive, less prone to turnover and, therefore, less expensive in the long run. Increasing the pay for employees wasn’t elevating employees above shareholders; it was the right thing to do for employees and for shareholders.

If an increase to $20 was good, why stop there? Why not $50 per hour? Because the benefits the business receives at $50 don’t justify the expense. The bank would no longer be able to price its products competitively and would lose business. The employees would “win” in the short term, but eventually the lost business would lead to job cuts, meaning both employees and shareholders would lose. The negative effects of stakeholder overreach are no different than when CEOs overreach to inflate short-term profits. Both hurt shareholders and stakeholders.”