Best Value Stock in Buffett's Portfolio
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy BAC?
Source: Fool
- Stock Valuation Analysis: Charter Communications, the cheapest stock in Buffett's portfolio, trades at just 6x earnings and 5x forward earnings, making it particularly attractive to value investors following the recent market pullback.
- Bank Performance Highlights: Bank of America (BAC) stands out as the best value stock in Buffett's portfolio, currently trading at around 12 times earnings, with 83% of analysts rating it as a buy, reflecting strong market confidence in its future growth.
- Revenue Growth Trend: Bank of America reported a 7% revenue increase last year, achieving an 18% rise in earnings per share to $0.98 in Q4, while also lowering its efficiency ratio by 194 basis points to 61%, indicating enhanced profitability and an optimistic outlook.
- Credit Quality Improvement: With a decrease in the net charge-off ratio and lower provisions for credit losses in Q4, Bank of America's credit quality is improving, and management projects net interest income growth of 5% to 7% in 2026, providing investors with stable income expectations.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 49.270
Low
55.00
Averages
61.64
High
71.00
Current: 49.270
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Best Value Stock in Buffett's Portfolio
- Stock Valuation Analysis: Charter Communications, the cheapest stock in Buffett's portfolio, trades at just 6x earnings and 5x forward earnings, making it particularly attractive to value investors following the recent market pullback.
- Bank Performance Highlights: Bank of America (BAC) stands out as the best value stock in Buffett's portfolio, currently trading at around 12 times earnings, with 83% of analysts rating it as a buy, reflecting strong market confidence in its future growth.
- Revenue Growth Trend: Bank of America reported a 7% revenue increase last year, achieving an 18% rise in earnings per share to $0.98 in Q4, while also lowering its efficiency ratio by 194 basis points to 61%, indicating enhanced profitability and an optimistic outlook.
- Credit Quality Improvement: With a decrease in the net charge-off ratio and lower provisions for credit losses in Q4, Bank of America's credit quality is improving, and management projects net interest income growth of 5% to 7% in 2026, providing investors with stable income expectations.
See More
Bank of America: Best Value Stock in Buffett's Portfolio
- Investment Value Analysis: Bank of America (BAC) is currently the best value stock in Buffett's portfolio, trading at around 12 times earnings and down 12% year-to-date, indicating its attractiveness during market pullbacks, which may draw more investor attention.
- Revenue Growth Momentum: Last year, Bank of America increased its revenue by 7%, with fourth-quarter earnings per share reaching $0.98, an 18% increase, demonstrating significant progress in enhancing profitability and strengthening future growth potential.
- Improving Credit Quality: With a decrease in the net charge-off ratio and lower provisions for credit losses in the fourth quarter, Bank of America shows improving credit quality, which will help reduce risks and boost investor confidence.
- Optimistic Analyst Ratings: Wall Street analysts have set a median price target of $61 for Bank of America, suggesting a 26% upside over the next 12 months, with 83% of analysts rating it as a buy, further validating its investment appeal.
See More
Global Energy Market Faces Structural Crisis Amid Middle East Conflict
- Strait of Hormuz Oil Flow Collapse: According to BofA Global Research, oil and product movements through the Strait of Hormuz have plummeted from approximately 20 million barrels per day to under 2 million barrels per day, and if this situation persists for several weeks, the global supply chain risks a breakdown reminiscent of the energy crises of the 1970s.
- Price Restructuring and Supply Deficit: Although global oil prices have not yet fully reflected the magnitude of this shock, BofA has revised its baseline forecasts, now projecting a massive 4 million barrels per day supply deficit for Q2 2026 and raising its Brent crude average forecast to $92.50 per barrel, indicating a growing divergence between producers and consumers.
- Rising Demand Rationing Risks: The lack of immediate alternatives to oil, especially in transportation and petrochemical sectors, poses significant risks of demand rationing, with BofA analysts warning that if the conflict extends beyond 2 to 4 weeks, the global oil supply chain may reach a breaking point, necessitating mandatory reductions in energy consumption to balance the market.
- Monitoring for International Intervention: Markets are closely monitoring whether emergency international intervention can restore maritime security before inventory buffers in consuming nations are completely exhausted, as the dual pressures of high energy costs and the inability to transport products create a stagflationary drag on global growth.
See More
Kevin Warsh Nominated for Federal Reserve Chair Amid Controversy
- Hearing Scheduled: The Senate Banking Committee will hold a nomination hearing for Kevin Warsh on April 16, despite ongoing criminal investigations into the Federal Reserve, highlighting the complexities faced by the Trump administration in navigating this situation.
- Investigation's Impact on Nomination: Senator Thom Tillis has stated he will not vote to confirm Warsh until the investigation is resolved, indicating a conflict between Trump's push for the nomination and the need to maintain the Fed's independence.
- Controversy Over Fed Independence: Current Fed Chair Jerome Powell is under investigation for allegedly lying to Congress, which he claims is an attempt to pressure him into lowering interest rates, underscoring the vulnerabilities of the Fed under political scrutiny.
- Judicial Intervention and Investigation Status: Federal Judge James Boasberg has denied the government's motion regarding subpoenas related to the Fed, leaving the future of the investigation uncertain and illustrating the judiciary's critical role in limiting government actions.
See More
Buffett May End Donations to Gates Foundation Over Epstein Ties
- Donation Tensions: Buffett is considering halting his annual multi-billion dollar donations to the Gates Foundation due to Gates' ties to Epstein, indicating a significant impact on the foundation's funding sources and operations.
- Friendship Breakdown: In an interview, Buffett stated he has not spoken to Gates since the Epstein revelations, suggesting their friendship may be over, which could affect the future functioning of the Gates Foundation.
- Uncertain Donation Commitment: Buffett mentioned he will “wait and see what unfolds” regarding his donations, leaving the foundation's financial future uncertain and potentially jeopardizing its charitable initiatives.
- Concerns for the Future: Buffett expressed worries about the Gates Foundation's future, emphasizing the need for clarity on the situation, which may lead to increased scrutiny and regulation of charitable organizations.
See More
Stock Market Rallies on Optimism Over Iran War Resolution
- Market Rebound: The S&P 500 and Nasdaq Composite rose 3.4% and 4.4% respectively during the holiday-shortened trading week, breaking a five-week losing streak, reflecting optimism about a potential resolution to the Iran war.
- Oil Price Volatility: Despite an 11.4% surge in oil prices on Thursday, the stock market still rallied, indicating a new understanding of the inverse relationship between oil prices and stocks, which may signal increased investor confidence for the future.
- Strong Employment Data: The U.S. March jobs report revealed an addition of 178,000 jobs, significantly surpassing the Dow Jones estimate of 59,000, suggesting a healthy labor market that could alleviate concerns about stagflation driven by rising oil prices.
- IPO Surge: SpaceX confidentially filed for an IPO, potentially valued at $1.75 trillion, while OpenAI and other startups are also considering going public, which could bring new capital inflows and investment opportunities to the market.
See More
Best Value Stock in Buffett's Portfolio
- Stock Valuation Analysis: Charter Communications, the cheapest stock in Buffett's portfolio, trades at just 6x earnings and 5x forward earnings, making it particularly attractive to value investors following the recent market pullback.
- Bank Performance Highlights: Bank of America (BAC) stands out as the best value stock in Buffett's portfolio, currently trading at around 12 times earnings, with 83% of analysts rating it as a buy, reflecting strong market confidence in its future growth.
- Revenue Growth Trend: Bank of America reported a 7% revenue increase last year, achieving an 18% rise in earnings per share to $0.98 in Q4, while also lowering its efficiency ratio by 194 basis points to 61%, indicating enhanced profitability and an optimistic outlook.
- Credit Quality Improvement: With a decrease in the net charge-off ratio and lower provisions for credit losses in Q4, Bank of America's credit quality is improving, and management projects net interest income growth of 5% to 7% in 2026, providing investors with stable income expectations.
See More
Bank of America: Best Value Stock in Buffett's Portfolio
- Investment Value Analysis: Bank of America (BAC) is currently the best value stock in Buffett's portfolio, trading at around 12 times earnings and down 12% year-to-date, indicating its attractiveness during market pullbacks, which may draw more investor attention.
- Revenue Growth Momentum: Last year, Bank of America increased its revenue by 7%, with fourth-quarter earnings per share reaching $0.98, an 18% increase, demonstrating significant progress in enhancing profitability and strengthening future growth potential.
- Improving Credit Quality: With a decrease in the net charge-off ratio and lower provisions for credit losses in the fourth quarter, Bank of America shows improving credit quality, which will help reduce risks and boost investor confidence.
- Optimistic Analyst Ratings: Wall Street analysts have set a median price target of $61 for Bank of America, suggesting a 26% upside over the next 12 months, with 83% of analysts rating it as a buy, further validating its investment appeal.
See More
Global Energy Market Faces Structural Crisis Amid Middle East Conflict
- Strait of Hormuz Oil Flow Collapse: According to BofA Global Research, oil and product movements through the Strait of Hormuz have plummeted from approximately 20 million barrels per day to under 2 million barrels per day, and if this situation persists for several weeks, the global supply chain risks a breakdown reminiscent of the energy crises of the 1970s.
- Price Restructuring and Supply Deficit: Although global oil prices have not yet fully reflected the magnitude of this shock, BofA has revised its baseline forecasts, now projecting a massive 4 million barrels per day supply deficit for Q2 2026 and raising its Brent crude average forecast to $92.50 per barrel, indicating a growing divergence between producers and consumers.
- Rising Demand Rationing Risks: The lack of immediate alternatives to oil, especially in transportation and petrochemical sectors, poses significant risks of demand rationing, with BofA analysts warning that if the conflict extends beyond 2 to 4 weeks, the global oil supply chain may reach a breaking point, necessitating mandatory reductions in energy consumption to balance the market.
- Monitoring for International Intervention: Markets are closely monitoring whether emergency international intervention can restore maritime security before inventory buffers in consuming nations are completely exhausted, as the dual pressures of high energy costs and the inability to transport products create a stagflationary drag on global growth.
See More
Kevin Warsh Nominated for Federal Reserve Chair Amid Controversy
- Hearing Scheduled: The Senate Banking Committee will hold a nomination hearing for Kevin Warsh on April 16, despite ongoing criminal investigations into the Federal Reserve, highlighting the complexities faced by the Trump administration in navigating this situation.
- Investigation's Impact on Nomination: Senator Thom Tillis has stated he will not vote to confirm Warsh until the investigation is resolved, indicating a conflict between Trump's push for the nomination and the need to maintain the Fed's independence.
- Controversy Over Fed Independence: Current Fed Chair Jerome Powell is under investigation for allegedly lying to Congress, which he claims is an attempt to pressure him into lowering interest rates, underscoring the vulnerabilities of the Fed under political scrutiny.
- Judicial Intervention and Investigation Status: Federal Judge James Boasberg has denied the government's motion regarding subpoenas related to the Fed, leaving the future of the investigation uncertain and illustrating the judiciary's critical role in limiting government actions.
See More
Buffett May End Donations to Gates Foundation Over Epstein Ties
- Donation Tensions: Buffett is considering halting his annual multi-billion dollar donations to the Gates Foundation due to Gates' ties to Epstein, indicating a significant impact on the foundation's funding sources and operations.
- Friendship Breakdown: In an interview, Buffett stated he has not spoken to Gates since the Epstein revelations, suggesting their friendship may be over, which could affect the future functioning of the Gates Foundation.
- Uncertain Donation Commitment: Buffett mentioned he will “wait and see what unfolds” regarding his donations, leaving the foundation's financial future uncertain and potentially jeopardizing its charitable initiatives.
- Concerns for the Future: Buffett expressed worries about the Gates Foundation's future, emphasizing the need for clarity on the situation, which may lead to increased scrutiny and regulation of charitable organizations.
See More
Stock Market Rallies on Optimism Over Iran War Resolution
- Market Rebound: The S&P 500 and Nasdaq Composite rose 3.4% and 4.4% respectively during the holiday-shortened trading week, breaking a five-week losing streak, reflecting optimism about a potential resolution to the Iran war.
- Oil Price Volatility: Despite an 11.4% surge in oil prices on Thursday, the stock market still rallied, indicating a new understanding of the inverse relationship between oil prices and stocks, which may signal increased investor confidence for the future.
- Strong Employment Data: The U.S. March jobs report revealed an addition of 178,000 jobs, significantly surpassing the Dow Jones estimate of 59,000, suggesting a healthy labor market that could alleviate concerns about stagflation driven by rising oil prices.
- IPO Surge: SpaceX confidentially filed for an IPO, potentially valued at $1.75 trillion, while OpenAI and other startups are also considering going public, which could bring new capital inflows and investment opportunities to the market.
See More
