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Globe and Mail
6 days ago
- Business
- Globe and Mail
Bank of America Is One of the Largest Financial Companies by Market Cap. But Is It a Buy?
Key Points Bank of America is the second largest U.S. bank and the fifth largest financial company by market capitalization. The company just reported strong second-quarter earnings. There could be some positive tailwinds coming for the banking industry. 10 stocks we like better than Bank of America › To say that Bank of America's (NYSE: BAC) progress in the 15 years since the end of the financial crisis has been impressive would be an understatement. The bank went from being one of the most troubled of the major financial institutions to one of the most respected in the industry. In fact, Bank of America is now the second largest U.S. bank stock by market cap. However, Bank of America could still be an attractive business to invest in, especially now. Let's take a quick look at where Bank of America ranks in the overall financial sector, how the business is doing, and why now might be a smart time to buy. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » The largest financials companies by market cap The largest financial company in the world is Berkshire Hathaway(NYSE: BRK.A)(NYSE: BRK.B), with a market cap of more than $1 trillion. Many investors don't realize it, but Berkshire is technically an insurance company at heart -- Warren Buffett built its empire using insurance float from subsidiaries like GEICO and others. With that in mind, here's where Bank of America fits among the largest financial companies (the link leads to our up-to-date list) based in the United States by market cap: Company (Symbol) Description Market Capitalization Berkshire Hathaway Conglomerate with insurance focus $1.02 trillion JPMorgan Chase(NYSE: JPM) Bank $809 billion Visa(NYSE: V) Payment processor $677 billion Mastercard(NYSE: MA) Payment processor $502 billion Bank of America Bank $352 billion So, as of this writing, Bank of America is the fifth largest financial sector company by market cap and the second largest bank stock. It's likely it will stay this way for at least a little while, as there's a wide gap between Bank of America and the No. 4 (Visa) as well as with the No. 6, fellow big bank Wells Fargo (NYSE: WFC), which has a $260 billion market cap. How it's going Bank of America, and most other large bank stocks for that matter, just reported second-quarter results. In general, the numbers looked strong, and here are some key highlights: Revenue and EPS grew by 4% and 7% year over year, respectively. Customer deposits grew 5% to $2 trillion. Bank of America has the No. 1 retail deposit market share, and this growth rate was better than most peers. The bank achieved a 10% return on equity (ROE), which is generally considered to be the threshold of a strong ROE. Consumer banking added 175,000 net new checking accounts and consumer investment accounts grew by 13% thanks to strong market performance and inflows of capital. Bank of America has the No. 3 investment banking market share year-to-date. The company is doing arguably the best of the big banks when it comes to leveraging AI. It has 1,400 AI and machine learning patents, and, just to name one example, its "Ask Merrill" and "Ask Private Bank" AI tools get 23 million interactions per year. Bank of America spent $5.3 billion on stock buybacks and increased its dividend by 8%. Net interest yield increased by 3 basis points year over year despite no recent Federal Reserve rate cuts. Bank of America's net charge-off rate improved by four basis points compared with a year ago. I'm paying close attention to numbers like the net interest margin in the persistent high-rate environment, and the bank's NCO rate, which is a great indicator of the financial health of its customers. Is Bank of America a buy? The bottom line is Bank of America is an excellent institution, and its management has done a great job of embracing technology. If rates start to fall later this year as many expect, it could provide a nice tailwind for the stock, and the banking industry as a whole. In fact, there could be several positive tailwinds in the next few years, including a looser regulatory environment, the surge in IPO and M&A activity we're seeing, and potential lower corporate tax rates. With Bank of America shares trading for less than 13 times forward earnings and a historically attractive valuation of less than 1.3 times book value, Bank of America could be an excellent performer over the next few years. Should you invest $1,000 in Bank of America right now? Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bank of America wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Matt Frankel has positions in Bank of America and Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa. The Motley Fool has a disclosure policy.
Yahoo
6 days ago
- Business
- Yahoo
Bank of America Is One of the Largest Financial Companies by Market Cap. But Is It a Buy?
Key Points Bank of America is the second largest U.S. bank and the fifth largest financial company by market capitalization. The company just reported strong second-quarter earnings. There could be some positive tailwinds coming for the banking industry. 10 stocks we like better than Bank of America › To say that Bank of America's (NYSE: BAC) progress in the 15 years since the end of the financial crisis has been impressive would be an understatement. The bank went from being one of the most troubled of the major financial institutions to one of the most respected in the industry. In fact, Bank of America is now the second largest U.S. bank stock by market cap. However, Bank of America could still be an attractive business to invest in, especially now. Let's take a quick look at where Bank of America ranks in the overall financial sector, how the business is doing, and why now might be a smart time to buy. The largest financials companies by market cap The largest financial company in the world is Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), with a market cap of more than $1 trillion. Many investors don't realize it, but Berkshire is technically an insurance company at heart -- Warren Buffett built its empire using insurance float from subsidiaries like GEICO and others. With that in mind, here's where Bank of America fits among the largest financial companies (the link leads to our up-to-date list) based in the United States by market cap: Company (Symbol) Description Market Capitalization Berkshire Hathaway Conglomerate with insurance focus $1.02 trillion JPMorgan Chase (NYSE: JPM) Bank $809 billion Visa (NYSE: V) Payment processor $677 billion Mastercard (NYSE: MA) Payment processor $502 billion Bank of America Bank $352 billion Data source: Market caps as of 7/21/2025. So, as of this writing, Bank of America is the fifth largest financial sector company by market cap and the second largest bank stock. It's likely it will stay this way for at least a little while, as there's a wide gap between Bank of America and the No. 4 (Visa) as well as with the No. 6, fellow big bank Wells Fargo (NYSE: WFC), which has a $260 billion market cap. How it's going Bank of America, and most other large bank stocks for that matter, just reported second-quarter results. In general, the numbers looked strong, and here are some key highlights: Revenue and EPS grew by 4% and 7% year over year, respectively. Customer deposits grew 5% to $2 trillion. Bank of America has the No. 1 retail deposit market share, and this growth rate was better than most peers. The bank achieved a 10% return on equity (ROE), which is generally considered to be the threshold of a strong ROE. Consumer banking added 175,000 net new checking accounts and consumer investment accounts grew by 13% thanks to strong market performance and inflows of capital. Bank of America has the No. 3 investment banking market share year-to-date. The company is doing arguably the best of the big banks when it comes to leveraging AI. It has 1,400 AI and machine learning patents, and, just to name one example, its "Ask Merrill" and "Ask Private Bank" AI tools get 23 million interactions per year. Bank of America spent $5.3 billion on stock buybacks and increased its dividend by 8%. Net interest yield increased by 3 basis points year over year despite no recent Federal Reserve rate cuts. Bank of America's net charge-off rate improved by four basis points compared with a year ago. I'm paying close attention to numbers like the net interest margin in the persistent high-rate environment, and the bank's NCO rate, which is a great indicator of the financial health of its customers. Is Bank of America a buy? The bottom line is Bank of America is an excellent institution, and its management has done a great job of embracing technology. If rates start to fall later this year as many expect, it could provide a nice tailwind for the stock, and the banking industry as a whole. In fact, there could be several positive tailwinds in the next few years, including a looser regulatory environment, the surge in IPO and M&A activity we're seeing, and potential lower corporate tax rates. With Bank of America shares trading for less than 13 times forward earnings and a historically attractive valuation of less than 1.3 times book value, Bank of America could be an excellent performer over the next few years. Should you buy stock in Bank of America right now? Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bank of America wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Matt Frankel has positions in Bank of America and Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, Mastercard, and Visa. The Motley Fool has a disclosure policy. Bank of America Is One of the Largest Financial Companies by Market Cap. But Is It a Buy? was originally published by The Motley Fool
Yahoo
09-07-2025
- Business
- Yahoo
Berkshire Hathaway Inc. (BRK-B): A Bull Case Theory
We came across a bullish thesis on Berkshire Hathaway Inc. on Kingswell's Substack. In this article, we will summarize the bulls' thesis on BRK-B. Berkshire Hathaway Inc.'s share was trading at $486.21 as of June 25th. BRK-B's trailing and forward P/E were 12.96 and 24.15, respectively, according to Yahoo Finance. Krista Kennell/ Berkshire Hathaway's Q1 2025 results reflected a modest operational dip obscured by currency fluctuations. While headline operating earnings dropped 14.1%, the decline was just 2.6% excluding foreign exchange swings. Operating cash flow rose to $10.9 billion, and Berkshire's cash balance swelled to $328 billion, excluding Treasury payables and cash in subsidiaries. Buffett, though uneasy with this hoard, cited a lack of compelling opportunities, despite almost deploying $10 billion during the quarter. The cash build was aided by a halt in share repurchases, partly due to the 1% excise tax. Berkshire remained opaque about its equity investments, withholding details on its top five holdings (Apple, American Express, Bank of America, Coca-Cola, and Chevron), though no changes in names were reported. It was a net seller for the tenth consecutive quarter. Insurance underwriting fell $1.26 billion, primarily from SoCal wildfire losses, but GEICO defied the trend with standout results, achieving a remarkable 79.8% combined ratio. Investment income rose as more cash was deployed in Treasuries, and Berkshire's float edged up to $173 billion. BNSF Railway earnings rose 6.2%, driven by consumer products, but Buffett noted it's underperforming. Berkshire Hathaway Energy rebounded with 53% higher net income and progress on wildfire litigation. The manufacturing, service, and retail (MSR) group was mixed. Precision Castparts and NetJets performed well, but Lubrizol, IMC, and building products dragged down manufacturing earnings. Clayton Homes posted higher sales but lower profits due to rising interest expense. Retailing saw gains at BHA and home furnishings, while other retailers lagged. Pilot's earnings surged on lower interest costs, and McLane improved margins despite falling sales. Previously, we covered a bullish thesis on Berkshire Hathaway Inc. (BRK-A) by FluentInQuality in December 2024, which highlighted the company's diversified operations, strong cash flows, and Buffett's disciplined investment strategy. The company's stock price has appreciated by approximately 6.5% since our coverage. This is because the thesis has continued to play out. Kingswell shares a similar view but emphasizes recent Q1 2025 performance and capital allocation shifts. BRK-B is on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of BRK-B as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
Berkshire Hathaway Inc. (BRK-B): A Bull Case Theory
We came across a bullish thesis on Berkshire Hathaway Inc. on Kingswell's Substack. In this article, we will summarize the bulls' thesis on BRK-B. Berkshire Hathaway Inc.'s share was trading at $486.21 as of June 25th. BRK-B's trailing and forward P/E were 12.96 and 24.15, respectively, according to Yahoo Finance. Krista Kennell/ Berkshire Hathaway's Q1 2025 results reflected a modest operational dip obscured by currency fluctuations. While headline operating earnings dropped 14.1%, the decline was just 2.6% excluding foreign exchange swings. Operating cash flow rose to $10.9 billion, and Berkshire's cash balance swelled to $328 billion, excluding Treasury payables and cash in subsidiaries. Buffett, though uneasy with this hoard, cited a lack of compelling opportunities, despite almost deploying $10 billion during the quarter. The cash build was aided by a halt in share repurchases, partly due to the 1% excise tax. Berkshire remained opaque about its equity investments, withholding details on its top five holdings (Apple, American Express, Bank of America, Coca-Cola, and Chevron), though no changes in names were reported. It was a net seller for the tenth consecutive quarter. Insurance underwriting fell $1.26 billion, primarily from SoCal wildfire losses, but GEICO defied the trend with standout results, achieving a remarkable 79.8% combined ratio. Investment income rose as more cash was deployed in Treasuries, and Berkshire's float edged up to $173 billion. BNSF Railway earnings rose 6.2%, driven by consumer products, but Buffett noted it's underperforming. Berkshire Hathaway Energy rebounded with 53% higher net income and progress on wildfire litigation. The manufacturing, service, and retail (MSR) group was mixed. Precision Castparts and NetJets performed well, but Lubrizol, IMC, and building products dragged down manufacturing earnings. Clayton Homes posted higher sales but lower profits due to rising interest expense. Retailing saw gains at BHA and home furnishings, while other retailers lagged. Pilot's earnings surged on lower interest costs, and McLane improved margins despite falling sales. Previously, we covered a bullish thesis on Berkshire Hathaway Inc. (BRK-A) by FluentInQuality in December 2024, which highlighted the company's diversified operations, strong cash flows, and Buffett's disciplined investment strategy. The company's stock price has appreciated by approximately 6.5% since our coverage. This is because the thesis has continued to play out. Kingswell shares a similar view but emphasizes recent Q1 2025 performance and capital allocation shifts. BRK-B is on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of BRK-B as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
UBS Trims Berkshire Target but Stays Bullish, Betting on GEICO and Buffett's $347B War Chest
Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the stocks that Donald Trump owns. On June 3, UBS lowered its 12-month price target for Berkshire Hathaway Class B shares from $606 to $591, citing softer expectations for dividend income and lower cash yields. The firm cut its 2025 earnings forecast to $29,882 (Class A equivalent), down from $31,789, and made a slight downward revision to 2026 as well. UBS also removed any assumption of share buybacks for 2025 and 2026, noting that the stock is trading at a 9% premium to intrinsic value — a sharp contrast to the average 15% discount since buybacks resumed in 2018. Berkshire did not repurchase any shares in the first quarter. Despite the reduced estimates, UBS maintained a Buy rating, highlighting Berkshire's resilience in an uncertain environment. The company's $347 billion in cash and short-term holdings, along with its diversified, defensive business mix and minimal tariff exposure, were cited as core strengths. One potential upside catalyst is GEICO. UBS expects its combined ratio to improve to the mid-to-high 90s by 2027, with market share gains potentially starting this year. A GEICO rebound could lift insurance earnings and expand Berkshire's float, key drivers of long-term value. Berkshire Hathaway (NYSE:BRK-B) is Warren Buffett's long-standing holding company, which sprawls across insurance (GEICO, Gen Re), utilities, railroads, manufacturing and more. While we acknowledge the potential of BRK-B as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
