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Yahoo
37 minutes 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
2 hours ago
- Business
- Yahoo
Is the Cryptocurrency XRP (Ripple) a Millionaire-Maker?
Key Points XRP is exposed to some powerful growth drivers, like inflows of institutional money. Its future is quite bright in both the near term and the long term. Approaching this asset as a get-rich-quick play isn't going to pay off. 10 stocks we like better than XRP › Perhaps the oldest investing fantasy is to buy early, hold tight, and wake up one morning to see that your modest stake is suddenly worth millions. The fantasy occasionally comes true with cryptocurrency investments -- just not very often, and almost never once an asset is already large and well-known. XRP (CRYPTO: XRP) occupies exactly that space today. At roughly $3.55 per coin, its market cap hovers at about $210 billion, putting it at third place by size among all crypto assets. Should new buyers or long‑term holders expect a life‑changing 100-fold gain from here? Reality check Let's start with simple arithmetic, and assume that an investor is willing to commit $10,000 to buying XRP. A 100-fold gain would lift XRP's price to about $355 and its market cap to more than $21 trillion, well above the current valuation of some of the world's largest companies put together, and essentially the same size as the entire U.S. M2 money supply as of now. Such a move would make the investor into a millionaire. But the odds of that scale of repricing are exceedingly slim in any reasonable timeframe. Capital simply can't flood in fast enough, and there likely isn't enough freely moving capital in the financial system anyway -- at least not enough held by those willing to invest in crypto. Even a 10-fold move, to roughly $35 per coin, and a $2.1 trillion cap would require investors to treat XRP as a systemically important piece of global plumbing and buy it in vast quantities accordingly. That's possible, but it would demand flawless execution by Ripple (the business that issues XRP), very permissive regulators, and a willingness of institutional investors to hold billions in the token for liquidity and transaction settlement purposes (which is something Ripple is actively trying to get them to do). Is this smaller milestone realistic? Maybe. Is it a slam dunk? Absolutely not. Still, there's plenty of upside left for those who buy XRP soon. A more modest doubling or quadrupling during several years would push XRP's value into the $400 billion to $800 billion range, which is territory that Bitcoin and Ethereum comfortably occupied and, in Bitcoin's case, later exceeded. That scale of appreciation is demanding, but not outside historical precedent during broad bull cycles, like the one we're in now. But investors eyeing such gains need to watch a specific set of catalysts, not chase dreams of instant riches. What will be driving XRP higher? XRP's near-term future looks bullish for a few reasons. Regulatory clarity is finally coming into focus. In March, Ripple settled the long-running lawsuit brought by the Securities and Exchange Commission (SEC) for a reduced $50 million penalty, and the agency dropped its appeal over whether XRP traded on exchanges is a security. That removes a decade‑old cloud hanging over the coin and makes it easier for institutions to buy it. Real‑world traction is also picking up. As of mid‑2025, XRP's payments infrastructure boasts near‑global reach, with access to more than 90 markets. The network now supports hundreds of enterprise clients spread across many countries, and those clients settle cross‑border financial transfers using XRP. The wider that network grows, the more working capital needs to be held as XRP. That's also good for demand, even if the effect is gradual rather than explosive. Liquidity tools are expanding too. Ripple recently introduced a fully collateralized dollar stablecoin on the XRP Ledger (XRPL), and Ripple has since applied for a U.S. national bank charter so that its stablecoin reserves can sit directly at the Federal Reserve. Its stablecoin already boasts roughly $527 million in circulation. An on‑chain dollar reduces friction for cross‑border pay‑outs. Of course, there are still a few risks here that could easily derail the asset from multiplying in value. If global liquidity tightens, if regulators become more hawkish, or if competing blockchains out‑innovate, XRP's relative appeal could fade. Investors must weigh those hazards against the credible path to moderate, but not explosive, price appreciation. In other words, XRP's millionaire‑maker days are probably behind it. Yet the coin may still deserve a place in a diversified crypto portfolio if you're patient. Expecting a sensible gain from compounding over time rather than a lottery payout is the emotionally mature stance. Should you invest $1,000 in XRP right now? Before you buy stock in XRP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and XRP 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 $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — 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 Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy. Is the Cryptocurrency XRP (Ripple) a Millionaire-Maker? was originally published by The Motley Fool 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
3 hours ago
- Business
- Yahoo
As Taiwan Semi Joins the Trillion-Dollar Club, Should You Buy, Sell, or Hold TSM Stock?
Taiwan Semiconductor Manufacturing Company (TSM) has crossed into Wall Street's most elite tier, becoming the latest member of the exclusive trillion-dollar market capitalization club. In the last quarter, the semiconductor giant stunned investors with a 61% leap in net profit and quarterly revenue surpassing $30 billion, while margins soared above many of its industry peers. With every major AI player, from Apple (AAPL), to Nvidia (NVDA), relying on TSM's advanced technologies, and the world holding its breath as the semiconductor supply chain evolves, investors find themselves at a remarkable crossroads. Can TSM keep up this blistering pace, and should you bet on (or against) the chip giant now that it towers among the world's most valuable firms? Let's dive into TSM. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Should You Buy the Post-Earnings Dip in Lockheed Martin Stock? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. TSM's Q2 Financial Report Taiwan Semiconductor Manufacturing (TSM), the world's leading contract chipmaker, commands a market capitalization north of $1.24 trillion, cementing its status as the backbone of global tech for giants like Apple and Nvidia. TSM's share price is up 19% year-to-date and 39% over the last 52 weeks. TSM trades at a forward price-earnings multiple of 24.8x, compared to a sector median of 24.4x. This shows that TSM is likely fairly valued. On July 17, 2025, TSM reported blockbuster second-quarter numbers. Consolidated revenue reached $30 billion, surging 44.4% year-over-year and 17.8% sequentially. Net income was $12.8 billion, up 42.6% year over year, and dilted earnings per share came in at $0.49 and $2.47 per ADR. Production at the cutting edge remained the company's calling card: 3-nanometer technology deliveries accounted for 24% of wafer revenue, 5-nanometer 36%, and 7-nanometer 14%; advanced nodes (7-nm and better) captured an impressive 74% of total wafer sales. TSM's Growth Engines The company recently unveiled a $100 billion boost to its U.S. investment, expanding its American footprint to an extraordinary $165 billion overall. Rather than a routine capital allocation, this commitment will roll out three new state-of-the-art fabrication plants, two advanced packaging facilities, and a major R&D center. Together, these facilities are primed to reinforce the company's global leadership and ensure that heavyweight clients like Apple, Nvidia, Advanced Micro Devices (AMD), Broadcom (AVGO), and Qualcomm (QCOM) get a steady flow of the most advanced chips on the planet. This aggressive expansion is rooted in TSM's need to keep pace with persistent and intensifying customer demand. With orders surging, TSM is gearing up to open nine new fabrication facilities in 2025 alone, a testament to its unrivaled agility and capacity to scale. Partnerships continue to be a pillar of TSM's dominance, as TSM continues to secure and renew major manufacturing partnerships with global technology leaders. Significantly, both Nvidia and AMD (AMD) have selected TSM's cutting-edge HBM3E memory solution for their latest GPUs, the Blackwell and MI355X series, respectively, reinforcing TSM's dominance in critical high-performance and AI workloads. What the Experts See in TSM For the current quarter ending September 2025, analysts are forecasting average earnings per share of $2.53, up from $1.94 in the same period last year. Zooming out to the full fiscal year, consensus pegs TSM's average EPS at $9.68, a significant leap from the $7.04 reported last year. That translates to estimated year-over-year growth rates of 30.4% for the quarter and a striking 37.5% for the year. TSM's outlook for the third quarter of 2025 calls for revenue between $31.8 billion and $33 billion, supported by a gross profit margin in the 55.5% to 57.5% range and operating margins between 45.5% and 47.5%. That's a testament not just to the company's powerful pricing and scale advantages, but also to its ability to navigate large-scale capital investments and supply chain complexities without eroding profitability. The 11 analysts surveyed rate TSM as a consensus 'Strong Buy,' reflecting faith in both the momentum of its core business and its leadership in AI and advanced chip production. Their average price target stands at $257.88, representing 10% upside from current levels. Conclusion TSM is still the backbone of the global chip industry, and its growth story shows no signs of stopping. With profits soaring, strong analyst support, and expansion plans firing on all cylinders, holding or even adding a little more here looks smart, unless you expect a major tech rout. Personally, I think shares have room to edge higher over the next year as AI demand keeps fueling the fire. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Argaam
6 hours ago
- Business
- Argaam
Al Rajhi Capital sees no changes to MSCI Standard Index in August
Al Rajhi Capital said it does not expect any Saudi company to be added to the MSCI Saudi Arabia Standard Index but flagged Saudi Kayan Petrochemical Co. as a potential deletion and downgrade to the Small Cap Index. The firm cited Saudi Kayan's SAR 6.9 billion market cap as below the required threshold, adding that that the company's adjusted free float market cap also falls short. A removal could trigger outflows of about SAR 248 million. The MSCI review will be announced on Aug. 7, with changes effective Aug. 27. The firm said Umm Al Qura for Development and Construction Co. (Masar) and Riyadh Cables Co. exceed the total paid-up capital threshold but remain below the free float requirement, adding that Riyadh Cables could become eligible if its share price rises by about 25% and meets the adjusted threshold before the November review. Astra Industrial Group and Aldrees Petroleum and Transport Services Co. may become eligible if their shares rise more than 30%, assuming the current minimum thresholds remain unchanged, the brokerage added.
Yahoo
9 hours ago
- Business
- Yahoo
Clorox Earnings Preview: What to Expect
Oakland, California-based The Clorox Company (CLX) manufactures and markets consumer and professional products. It operates through Health and Wellness, Household, Lifestyle, and International segments. With a market cap of $15.6 billion, Clorox's portfolio consists of diverse brands sold in more than 100 countries and nearly every region of the world. The company is expected to release its Q4 results after the market closes on Thursday, Jul. 31. Ahead of the event, analysts expect CLX to report an EPS of $2.24, up an impressive 23.1% from $1.82 reported in the year-ago quarter. While the company has missed Street's bottom-line estimates once over the past four quarters, it has surpassed the projections on three other occasions. More News from Barchart Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Analysts Are Cutting Their Price Targets for UnitedHealth Stock Before Q2 Earnings. Is It Time to Ditch Shares? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For the full fiscal 2025, its EPS is expected to come in at $7.08, marking a solid 14.8% growth from $6.17 in fiscal 2024. But in fiscal 2026, its earnings are expected to plunge 8.6% year-over-year to $6.47 per share. CLX stock prices have dipped 2.4% over the past 52 weeks, notably underperforming the S&P 500 Index's ($SPX) 13.4% returns and the Consumer Staples Select Sector SPDR Fund's (XLP) 4.5% uptick during the same time frame. CLX stock prices dropped 2.4% in the trading session after the release of its disappointing Q3 results on May 5. Due to an unfavorable price mix, the company's organic sales dropped by 2% year-over-year. Further, its overall sales dropped 8.1% year-over-year to $1.7 billion due to divestitures of the VMS and Argentina businesses. This figure missed consensus estimates by a large margin. Moreover, its adjusted EPS plunged 15.2% year-over-year to $1.45, missing the consensus estimates by 7.6%, breaking its 10 quarters long streak of positive earnings surprises. CLX stock maintains a consensus 'Hold' rating overall, as analysts remain cautious about its prospects. Of the 18 analysts covering the stock, opinions include only one 'Strong Buy,' 13 'Holds,' and four 'Strong Sell' ratings. As of writing, the stock is trading slightly below its mean price target of $134.69. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
