Jim Cramer’s Top 5 Bank Stock Picks This Year

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 90                      

Jim Cramer has long been bullish on Bank of America Corporation (NYSE:BAC). Last year, Cramer praised Bank of America Corporation (NYSE:BAC)’s huge spending on IT and said that Bank of America is benefitting from rising interest rates and making more money because of more people keeping money in banks. Last year Cramer had also said that Bank of America Corporation (NYSE:BAC) stock was not expensive and also praised the company’s management.

Cramer had said that Bank of America Corporation (NYSE:BAC) stock could “pop” if it’s anywhere near as good as Wells Fargo and JPMorgan. Bank of America Corporation (NYSE:BAC) indeed posted strong quarterly results earlier this month. GAAP EPS in the third quarter came in at $0.90 beating estimates by $0.08. Revenue in the period jumped 2.9% year over year to $25.2 billion, surpassing estimates by $130 million.

Diamond Hill Select Strategy made the following comment about Bank of America Corporation (NYSE:BAC) in its Q2 2023 investor letter:

“Other bottom contributors included SunOpta, Bank of America Corporation (NYSE:BAC) and Texas Instruments. Bank of America (which we added to the portfolio in Q2) is among the US’s largest banks. Shares were pressured during the quarter against a still-challenging backdrop for banks, particularly as investors fret about rising deposit costs and the values of some longer-duration assets in a rising-rates environment.”