BofA Removes McCormick from US 1 List, Adds RenaissanceRe and Northrop Grumman.

BofA analysts have removed McCormick from their "US 1 List," a collection of top investment ideas. McCormick was a Buy-rated stock on the list, but BofA is renewing RenaissanceRe, Northrop Grumman, and RTX for new terms following 52 weeks on the list. This move is part of the firm's strategy to continually assess and update their investment recommendations.

Bank of America (BAC) has seen a mixed performance in the first half of 2025, with its net interest income (NII) rising by 5% year-over-year, driven by decent loan demand and higher-for-longer interest rates. However, the bank's stock has lagged behind its peers, gaining only 2.2% year-to-date, compared to Citigroup's (C) 29.9% and JPMorgan's (JPM) 19.7% gains [1].

BAC's liquidity profile remains solid, with average global liquidity sources of $938 billion as of June 30, 2025. The company's investment-grade long-term credit ratings and stable outlook facilitate easy access to the debt market. Additionally, BAC has rewarded shareholders with an 8% dividend increase to 28 cents per share and a new share repurchase plan of $40 billion [1].

However, BofA analysts have removed McCormick from their "US 1 List," a collection of top investment ideas, and renewed RenaissanceRe, Northrop Grumman, and RTX for new terms following 52 weeks on the list. This move is part of the firm's strategy to continually assess and update their investment recommendations [2].

BAC faces near-term challenges, including macroeconomic ambiguity due to tariffs and their impact on interest rates. The bank's investment banking (IB) business has also been subdued, with a 6% year-over-year decline in fees in the first half of 2025. Additionally, BAC's asset quality has been weakening, with provisions surging by 115.4% in 2022, 72.8% in 2023, and 32.5% in 2024 [1].

Despite these challenges, BAC's global presence, diversified revenue streams, ongoing branch openings, and technological innovations provide a strong foundation for organic growth. The stock is currently trading at a 12-month trailing price-to-tangible book (P/TB) ratio of 1.66X, which is below the industry's average of 2.87X [1].

References:
[1] https://finance.yahoo.com/news/bank-americas-slow-start-2025-130900227.html
[2] https://paginasiete.bo/prudential-plc-trims-bank-of-america-nyse-bac-stake-to-503686-shares-position-valued-at-21-02-million-bac-stock-price/