3 Top Stocks I Bought This Week

This year, I’m loading up on bank stocks like Bank of America and TD Bank.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

We’re not even two weeks into 2023, and already I’ve made a few buys. Between foreign stocks, bank stocks and other dividend sectors, I’ve got a lot of things I’m interested in. Markets started off with a bang this year, as the first week of trading closed on a high note, with a 1.58% gain for the TSX on Friday, and 2.2% for the whole week. In this article, I will explore three stocks I bought this week, starting with two foreign stocks and then moving on to one Canadian name.

Bank of America

Bank of America (NYSE:BAC) is a bank stock I bought this week in anticipation of its upcoming earnings release. BAC releases earnings on Friday, and expectations are pretty muted. Analysts expect Bank of America to earn $0.79 per share, which would be unchanged from the same period last year. I’m not sure I can confidently predict that BAC will beat the earnings estimate, but I do know that the growth in net interest income will be very high.

BAC already reported 24% growth in net interest last quarter due to the Fed’s interest rate hikes, then Mastercard came out and reported that Christmas spending increased 7.6% this year, so it’s very likely that credit card interest will grow a lot. The other components of loan income might be affected by rising defaults and charge-offs, but so far we aren’t seeing a truly staggering increase in those items, so the outlook is looking good.

Taiwan Semiconductor

Taiwan Semiconductor Manufacturing (NYSE:TSM) is a Taiwanese company that (you guessed it) manufactures semiconductors. Technically, a semiconductor is a substance that’s neither a conductor nor an insulator, but in the business world, the term basically means computer chip. That’s what TSM does; it makes computer chips. Specifically, it manufactures the chips that other companies designed, making it a contract manufacturer.

Things are tough for the semiconductor industry this year, but not for TSM, which in its most recent quarter reported:

  • A 47.9% increase in revenue.
  • A 77.7% increase in net income.
  • A 77.8% increase in earnings per share.

It was a solid showing. Many companies reported losses in the third quarter, but TSM delivered strong growth, thanks to its resilient business model and control of 65% of the semiconductor industry.

TD Bank

The Toronto-Dominion Bank (TSX:TD) is a stock I’ve been buying for years, and have made pretty decent money on. It’s a bank like Bank of America, and many of the points I made about BAC apply here, too. However, TD has one factor that makes it stand out compared to BAC:

Deals. TD is currently in the process of buying two U.S. banks: First Horizon and Cowen. First Horizon does about $1 billion a year in earnings, Cowen about $128 million. If these deals close, they will significantly add to TD’s own earnings. The First Horizon deal has faced significant pushback, but the Cowen deal looks very likely to close on schedule. Even if TD only closes the Cowen deal, it’ll see its earnings increase, and the FHN deal would be a real game-changer, as that bank reported strong earnings growth last quarter.

Created with Highcharts 11.4.3Toronto-Dominion Bank PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Should you invest $1,000 in Bank Of America right now?

Before you buy stock in Bank Of America, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Bank Of America wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Fool contributor Andrew Button has positions in Toronto-Dominion Bank, Bank of America  and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Bank of America and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Bank Stocks

Paper Canadian currency of various denominations
Bank Stocks

Is BNS Stock a Buy While it’s Below $70?

Bank of Nova Scotia is down 10% in 2025. Is the stock oversold?

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

The Best Canadian Dividend Stocks to Buy and Hold Forever in a TFSA

TFSA investors can avoid the need to fly to safety during market turns by owning the best Canadian dividend stocks.

Read more »

sale discount best price
Bank Stocks

2 Canadian Bank Stocks to Buy at a Discount

These two TSX bank stocks are too cheaply priced to ignore if you want to increase exposure to the banking…

Read more »

Middle aged man drinks coffee
Bank Stocks

How I Achieved My 2025 Goal of $5,000 in Annual Passive Income

I got to $5,675 in annual passive income with dividend stocks like the Toronto-Dominion Bank (TSX:TD).

Read more »

ETF chart stocks
Bank Stocks

A Canadian Bank ETF I’d Buy With $1,000 and Hold Forever

This ETF provides leveraged exposure to Canada's Big Six banks.

Read more »

a person looks out a window into a cityscape
Bank Stocks

Should You Buy TD Bank Stock While it’s Below $85?

Investing in a well-established bank stock trading at a cheap multiple can be an excellent way to put your money…

Read more »

a person watches a downward arrow crash through the floor
Bank Stocks

These Stocks Got Trounced by Tariffs, But the Damage Is Overdone

TD Bank (TSX:TD) stock looks like a great deal, even as tariff threats look to hit.

Read more »

open vault at bank
Bank Stocks

Best Stock to Buy Right Now: TD Bank vs Royal Bank?

TD Bank stock's earnings and reputation have been hit. Yet, it trades at higher multiples than Royal Bank.

Read more »