Analyst Explains Why He's Selling Bank of America (BAC) and Holding 'Very Large' Stake in Goldman Sachs

We recently published Trending Analyst Calls: 10 Stocks to Buy and Sell. Bank of America Corporation (NYSE:BAC) is one of the trending analyst calls.

Steve Weiss, Founder and Managing Partner of Short Hills Capital Partners, explained in a recent program on CNBC why he’s selling Bank of America Corp (NYSE:BAC) after holding the stock for a long time. The analyst also discussed why he remains an investor in Goldman Sachs:

“Number one, I’m looking to reduce my exposure overall to the market. I’m still pretty fully invested. I also have Goldman Sachs and that is a core position. It’s a very large position. So what I get in BFA that I’m not so sure I want right now is more of the general consumer population versus what I’m isolating on is the underwriting cycle, IPOs, investment banking, etc. And I get that with Goldman. So this had really just very little despite what I just said to do with the company. Almost nothing. It was really just an exposure in the portfolio issue. So I just said, do I need to double down in financials because I’ve run a very, you know, non-diversified portfolio.”

Ariel Global Fund stated the following regarding Bank of America Corporation (NYSE:BAC) in its Q1 2025 investor letter:

“We initiated a position in one of the world’s leading financial institutions, Bank of America Corporation (NYSE:BAC). We think the firm’s revenue momentum across its capital markets group is underappreciated at current levels. We also expect the company’s net interest income growth to exceed Wall Street expectations, despite a conservative outlook for loan growth and re-pricing. Meanwhile, a more favorable regulatory landscape, highlighted by a less restrictive capital rule should lead to a substantial increase in share buybacks. Taken together, we view the company’s earnings outlook to be attractive, supported by higher profitability and free cash flow generation amidst an improving operating environment.”

While we acknowledge the potential of BAC 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.

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Disclosure: None. This article is originally published at Insider Monkey.