Is Bank Of America (BAC) The Best Undervalued Stock to Buy Now?

We just covered the 10 Best Stocks to Buy Now According to Warren Buffett. Bank Of America Corp (NYSE:BAC) ranks #3  (see the 5 best stocks to buy now here).

Bank Of America Corp (NYSE:BAC) ranks third in our list of the best stocks to buy now, according to Warren Buffett’s Berkshire Hathaway.

Bank Of America Corp (NYSE:BAC) is starting to benefit from balance sheet decisions made during the low-rate period of 2020–2021, when it gathered large deposits and invested heavily in long-term securities. While those investments weighed on earnings as rates rose, their gradual maturity is allowing the bank to reinvest at higher yields, providing a lift to net interest income.

The stock trades at an attractive P/E ratio of 10.5 based on 2027 estimates. For 2026, Bank Of America Corp (NYSE:BAC) expects NII growth of 5–7%, which is healthy given the fact that we are in a hold or cut cycle from the Federal Reserve.

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