First Citizens BancShares (FCNCA): Among the Aggressive Stocks Picked by Hedge Funds
We recently published a list of . In this article, we are going to take a look at where First Citizens BancShares, Inc. (NASDAQ:FCNCA) stands against other aggressive stocks picked by hedge funds.
The broader market has dropped into correction territory, declining by over 10% from its peak in February and wiping $5 trillion in market value. Simultaneously, Reuters reported that the Nasdaq Composite is also undergoing a correction, reflecting a wider pullback in high-growth stocks. With unpredictable market trends, aggressive stock portfolios offer both positive and negative effects for growth investors. Investor confidence is highly dependent on trade pressures and inflation, with the Federal Reserve holding rates at 4.25-4.5% and predicting inflation to rise to 2.8%. Concurrently, trade tensions between the U.S. and China are worsening, while in India, the outflow of capital has surged. An estimated $29 billion of foreign investment has been pulled out of stocks in India since October. It is the biggest outflow in six months due to global investment volatility.
History proves that these market corrections, while having repercussions, also create some opportunities. As mentioned in Reuters, since 1929, the broader market has gone through 56 corrections, but only 22 turned into bear markets. These dips typically last 115 days and fall by 13.8%, much less than the 35.6% drops in bear markets. Gold prices went up 13% in 2025, driven by investors looking for stability, and U.S. Treasury yields have fallen as demand for safe assets increases. However, aggressive investors know that market swings can be a good time to buy growth stocks poised for a comeback.
For high-growth investors, it is challenging to maneuver this volatile market. Corrections of 7-10% are occurring more frequently now, yet major indices still find support, which indicates that market disruptions could be investment opportunities. Companies with strong market control, advantages in U.S.-based manufacturing, or innovative business models might be more efficient in these economic conditions. Similarly, sectors evolving through new tech, population shifts, or regulation shifts could offer significant gains for those staying poised in short-term ups and downs.
Sector rotation is becoming crucial in these market shifts, as Reuters reported that the 'Magnificent Seven' tech giants are facing challenges. The major EV company has dropped 33%, and the group is down 17% on average since February. This has shifted investors' interest toward undervalued sectors with strong potential. Historically, aggressive stocks bounce back stronger after corrections as investors regain their risk appetite. Despite current disruptions, companies with solid base values, exposure to disruptive tech, and apt market strategies could see considerable gains as markets settle down.
While uncertain market conditions persist, history shows that downturns often lead to significant recoveries. Investors who plan smartly during these shifts might see gains as money flows between markets and policies evolve.
To compile our list of the Aggressive Stock Portfolio: 12 Stocks Picked by Hedge Funds, we began by screening stocks with a minimum of 20% revenue growth over the past three years and strong EPS performance. From this pool, we identified the top 12 stocks with the highest revenue growth and strong hedge fund interest. Finally, we ranked these stocks in ascending order based on hedge fund sentiment as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A financial advisor and their client discussing the merits of wealth management services.
3-Year Average Revenue Growth: 68.93%
Number of Hedge Fund Holders: 45
First Citizens BancShares, Inc. (NASDAQ:FCNCA) is the parent company of First-Citizens Bank & Trust, which provides commercial and retail banking services. The company is well-known in commercial lending, small business banking, and wealth management. Furthermore, its Silicon Valley Bank (SVB) purchase has strengthened its position in tech and venture capital banking. This helped First Citizens grow its client base among startups and high-growth companies.
First Citizens BancShares, Inc. (NASDAQ:FCNCA) posted robust results for Q4 ended December 31, 2024. The net income rose to $700 million from $639 million last quarter, with the net income for common stockholders at $685 million, or $49.21 per share. Adjusted net income was $643 million, slightly down from $675 million in Q3, due to acquisition costs and tax adjustments. However, deposits grew 9.6% to $155.23 billion, beating expectations, while loans increased by $1.5 billion, driven by commercial and business lending growth.
First Citizens BancShares, Inc. (NASDAQ:FCNCA) has positioned itself strategically for shifting interest rates, with growth plans in key lending areas and ongoing investments in efficiency. For 2025, the company expects a net charge-off ratio of 35-45 basis points and is preparing for potential Federal Reserve cuts affecting interest income. Meanwhile, management aims to expand relationship management and launch another share buyback in H2 of 2025.
Nevertheless, First Citizens BancShares, Inc. (NASDAQ:FCNCA) kept a net interest margin of 3.32% even with interest rate tensions. The SVB sector produced solid trends, with client funds increasing to $5.3 billion. The company also bought back 6.44% of shares, spending $963 million, thus establishing itself as one of the top picks in our stock portfolio, with strong revenue growth and high EPS.
Overall, FCNCA ranks 9th on our list of aggressive stocks picked by hedge funds. While we acknowledge the potential of FCNCA, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FCNCA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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