Bank of America also does investment banking and money management via Merrill Lynch, and has a strong international presence, but it is first and foremost the leader among major banks in domestic retail banking. * indicates the important links in the menu, After-Market: Though he's bearish long term, an investor can nibble away here. If the volume is too light, in absolute terms or for a relatively large position, it could be difficult to execute a trade. Bank of America trades on the New York Stock Exchange (NYSE) under the ticker symbol "BAC.". He must have been thinking along these lines last year when he eliminated positions in JPMorgan and other banks but added meaningfully to his position in BAC. Banks have spent more than a decade under a cloud of distrust stemming from their reputation as the central culprits of the 2007-2009 crash. Create a FREE account to see the latest opinions & get alerts about when to buy, In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. on . According to the issued ratings of 13 analysts in the last year, the consensus rating for Bank of America stock is Moderate Buy based on the current 4 hold ratings and 9 buy ratings for BAC. The dividend payout ratio of Bank of America is 27.85%. 30 stock analysts Read stock experts recommendations * indicates the important links in the menu, After-Market: Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy stocks with the highest probability of success. This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. The Growth Scorecard table also displays the values for its respective Industry along with the values and Growth Score of its three closest peers. It's the review of the most popular stocks on social media. Many investors prefer EV to just Market Cap as a better way to determine the value of a company. Bank of America prudently kept most of the sudden bump of cash sitting in deposits, undoubtedly taking into account the unknown degree to which to which depositors might ultimately decide to withdraw money to spend. View analysts price targets for BAC or view top . The company has been increasing its dividend for 2 consecutive year(s), indicating that it does not yet have a strong track record of dividend growth. Zacks Style Scores Education - Learn more about the Zacks Style Scores. At this writing, Bank of America's market cap is $200.2 billion. Bank Of America (NYSE: BAC) is owned by 68.36% institutional shareholders, 26.30% Bank Of America insiders, and 5.34% retail investors. Real estate play Welltower yields . Using this item along with the 'Current Cash Flow Growth Rate' (in the Growth category above), and the 'Price to Cash Flow ratio' (several items above in this same Value category), will give you a well-rounded indication of the amount of cash they are generating, the rate of their cash flow growth, and the stock price relative to its cash flow. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Based on earnings estimates, Bank of America will have a dividend payout ratio of 23.85% next year. Stocks . Zacks Rank Education -- Learn more about the Zacks Rank I am not receiving compensation for it (other than from Seeking Alpha). The following companies are subsidiares of Bank of America: BA Continuum Costa Rica, BA Continuum India Private Limited, BA Continuum Singapore International Holdings Private Limited, BA Credit Card Funding, BA Electronic Data Processing (Guangzhou) Ltd., BAC Canada Finance Company, BAC North America Holding Company, BAL Investment & Advisory, BAMS Solutions, BANA Canada Funding Company Ltd., BANA Holding Corporation, Banc of America FSC Holdings, Banc of America Leasing & Capital, Banc of America Preferred Funding Corporation, Banc of America Public Capital Corp, Banc of America Securities Asia Limited, Bank of America California, Bank of America Custodial Services (Ireland) Limited, Bank of America Malaysia Berhad, Bank of America Merrill Lynch Banco Multiplo S.A., Bank of America Merrill Lynch International Designated Activity Company, Bank of America Merrill Lynch International Limited, Bank of America Mexico, Bank of America Singapore Limited, BankAmerica International Financial Corporation, Blue Ridge Investments, BofA Canada Bank, BofA Finance LLC, BofA Securities, BofAML EMEA Funding Limited, BofAML Jersey Holdings Limited, Boston Overseas Financial Corporation, CM Investment Solutions Limited, Catahoula-LaSalle Bank, Cherry Park LLC, Countrywide Financial Corporation, Countrywide Home Loans, DSP Merrill Lynch Limited, FIA Holdings S.a.r.l., Financial Data Services, First Franklin Financial Corporation, HealthLogic Systems, MBNA, ML Equity Solutions Jersey Limited, ML UK Capital Holdings Limited, Managed Account Advisors LLC, Merrill Lynch, Merrill Lynch (Asia Pacific) Limited, Merrill Lynch (Australia) Futures Limited, Merrill Lynch (Singapore) Pte. Within the Finance Sector, it would fall into the M Industry of Banks & Thrifts. Ltd., Merrill Lynch Mexico, Merrill Lynch Professional Clearing Corp., Merrill Lynch Reinsurance Solutions LTD, Merrill Lynch S.A. Corretora de Titulos e Valores Mobiliarios, Merrill Lynch Securities (Taiwan) Ltd., Merrill Lynch Securities (Thailand) Limited, Merrill Lynch South Africa Proprietary Limited, Merrill Lynch Yatirim Bank A.S., Mortgages 1 Limited, Mortgages plc, NB Holdings Corporation, National Processing, OOO Merrill Lynch Securities, One Bryant Park LLC, PT Merrill Lynch Indonesia, PT Merrill Lynch Sekuritas Indonesia, Plano Partners, ReconTrust Company, U.S. Trust Company of Delaware, and Wave Lending Limited. $32.37 Bhd., Merrill Lynch Markets (Australia) Pty. That hostile crowd was an early warning that BAC had a long journey ahead to reestablish trust. Bank of America saw a decline in short interest in the month of November. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. Since bonds and stocks compete for investors' dollars, a higher yield typically needs to be paid to the stock investor for the extra risk being assumed vs. the virtual risk-free investment offered in U.S.-backed Treasuries. $32.37 Since cash can't be manipulated like earnings can, it's a preferred metric for analysts. He later buys out the Banca de America e de Italia (Bank of America and Italy) which was also located in San Francisco. Guidance from CEO's will be tepid. Top institutional investors include Vanguard Group Inc. (7.51%), Price T Rowe Associates Inc. MD (1.29%), Dimensional Fund Advisors LP (0.44%), UBS Asset Management Americas Inc. (0.38%), Primecap Management Co. CA (0.31%) and Barclays PLC (0.27%). If I didn't own it already, I might start by buying a partial position at the current price. He eventually converted his options into Bank of America common shares and continued to add to his position as recently as Q4 2020 (while selling his positions in other banks). Bank of America's mailing address is 100 N. TRYON STREET, CHARLOTTE NC, 28255. Investment banking hasn't worked for any of the banks. The chart below provides a picture of its ups and downs before and since. Management strong on loan book. The argument as to whether lower rates justify lower discounting rates for cash flow and thus justify higher stock prices is not readily answerable. Looking to buy Bank of America Stock? Great capital base. Ltd., Merrill Lynch International, Merrill Lynch International & Co. C.V., Merrill Lynch Israel Ltd., Merrill Lynch Japan Finance GK, Merrill Lynch Japan Securities Co., Merrill Lynch Luxembourg Finance S.A., Merrill Lynch Malaysian Advisory Sdn. you another view on the trending stocks, so you will not waste your precious time The Daily Price Change displays the day's percentage price change using the most recently completed close. This longer-term historical perspective lets the user see how a company has grown over time. Its price to book ratio, meanwhile, has jumped from about 1.2 to about 1.9. In the past three months, Bank of America insiders have sold more of their company's stock than they have bought. 7:58 PM ET. What is Bank of America's stock price forecast for 2023? This was probably true in the literal sense, but the loan provided Buffett's imprimatur and worked wonders in shoring up the stock price and putting fears about BAC's survival to rest. Bank of America is trading at $28 per share. Our testing substantiates this with the optimum range for price performance between 0-20. Despite the overwhelmingly bearish stock market commentary towards 2023, there is still one factor that could drive upside. The future always contains a probabilistic chart of forking paths. Only 0.26% of the stock of Bank of America is held by insiders. for help on deciding if you should buy, sell or hold the stock. On average, they expect the company's share price to reach $42.91 in the next year. Bank of America stocks (BAC.US) are listed on the NYSE and all prices are listed in US Dollars. Like the earnings yield, which shows the anticipated yield (or return) on a stock based on the earnings and the price paid, the cash yield does the same, but with cash being the numerator instead of earnings. The P/E ratio of Bank of America is 10.25, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 122.13. Visit www.zacksdata.com to get our data and content for your mobile app or website. Since then, BAC shares have decreased by 27.2% and is now trading at $32.38. JPM has a slightly different business focus, being more heavily weighted toward investment banking. One share of BAC stock can currently be purchased for approximately $32.38. Does Bank of America have any subsidiaries? Bank of America has received a consensus rating of Buy. The loan was structured as preferred stock with options to buy 700 million Bank of America common shares at $7 per share. This includes personalizing content and advertising. While our testing has found that a P/S ratio of <2 is the optimum range for returns, be sure to compare this ratio to its respective industry. Get the latest Bank of America Corporation BAC detailed stock quotes, stock data, Real-Time ECN, charts, stats and more. We use cookies to understand how you use our site and to improve your experience. At the time, the merger was the largest bank merger in history and the company has only grown in the time since. It trades at 10x earnings and 1x book. Bank of America's stock is owned by a number of retail and institutional investors. For example, a stock trading at $35 with earnings of $3 would have an earnings yield of 0.0857 or 8.57%. Burdened by its untimely acquisition of Countrywide Financial in 2006 as well as the October 2008 acquisition of Merrill Lynch (under heavy pressure from the Fed), it emerged from the crisis as one of the most heavily damaged financial institutions among those which managed to survive. If a company's net margin is 15%, for example, that means its net income (or profit) is 15 cents for every $1 of sales the company makes. (Ad), There Is Fundamental Value In Broadcom, And It Yields 3.35%, Costco vs Amazon: an end of the year showdown, Discount Retailers Could Make Good Bargain Stocks. The scores are based on the trading styles of Value, Growth, and Momentum. Who are Bank of America's major shareholders? See rankings and related performance below. A yield of 8.57% also means 8.57 cents of earnings for $1 of investment. See BAC stock price and Buy/Sell Bank of America. The dividend payout ratio is 27.85%. Also, by looking at the rate of this item, rather than the actual dollar value, it makes for easier comparisons across the industry and peers. analysts published opinions Discuss news and analysts' price predictions with the investor community. 7:58 PM ET. This is also commonly referred to as the Asset Utilization ratio. They continue to buyback shares and they will likely raise their dividend. This has always struck me as the most important long term risk to banks, but the actions the major banks, especially BAC and JPM, have demonstrated that they are fully aware of the risk and on top of it. Company stockholders of record at the close of business on July 18, 2022 will . We paraphrase the experts by hand, we watch the shows and write down what we understood The Earnings Yield (also known as the E/P ratio) measures the anticipated yield (or return) an investment in a stock could give you based on the earnings and the price paid. With meager returns because of low returns on their float, they have seen buybacks as an opportunity to financially engineer better returns. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. The environment seems favorable for a well run, cost conscious retail bank, and Bank of America checks off all the major boxes. That headwind is likely to become a tailwind in 2021 and over the next several years and perhaps beyond. Koninklijke KPN (OTCMKTS:KKPNY - Get Rating) was upgraded by equities researchers at Bank of America from a "neutral" rating to a "buy" rating in a research note issued to investors on Monday, The Fly reports.KKPNY has been the topic of a number of other research reports. Like the P/E ratio, a lower number is considered better. A strong weekly advance (especially when accompanied by increased volume) is a sought after metric for putting potential momentum stocks onto one's radar. Video game developer and publisher Take-Two Interactive Software (NASDAQ: TTWO) stock got pummeled on its recent fiscal Q2 2023 earnings report. The swap into banks proved to be one of my better decisions. Bank of America employs 213,000 staff and has a trailing 12-month revenue of around $91.5 billion. The PEG ratio is the P/E ratio divided by its growth rate. What is the dividend yield for Bank of America? So it's a good idea to compare a stock's debt to equity ratio to its industry to see how it stacks up to its peers first. I bought my first stock in a custodial account in 1958. The price has fallen in 7 of the last 10 days and is down by -13.86 . One can argue that BAC stock has already priced in gangbusters growth. Consensus analyst expectations peg the bank's one-year share performance stock at $34 per share, at the top of the stock's 52-week trading range of . In general, a lower number or multiple is usually considered better that a higher one. It is a trending stock that is worth watching. Market price $32.75. An increase in margin and an increase in absolute loan volume both lift Net Interest Income. I wrote this article myself, and it expresses my own opinions. That 50% of deposits not yet deployed comes not just from the predictable annual increase of deposits plus the PPP bump but also from tepid loan demand and its own reluctance to lend aggressively at such low rates. It is the bank which will see its earnings rise the most sharply if interest rates continue to rise. If, on the other hand, it went from $1.00 to 90 cents, that would be a -10% change in the consensus estimate revision. To learn more, click here. Seeing a company's projected sales growth instantly tells you what the outlook is for their products and services. Read our dividend analysis for BAC. Studies over the years have shown that companies which treat their employees well tend to perform better operationally and in stock performance than those which don't. Cash is vital to a company in order to finance operations, invest in the business, pay expenses, etc. It's important to remember, though, that this is a non-cash number which exists on the liabilities side of the balance sheet. For example, a company with a P/E ratio of 25 and a growth rate of 20% would have a PEG ratio of 1.25 (25 / 20 = 1.25). The technique has proven to be very useful for finding positive surprises. CEO's done a great job. In-depth profiles and analysis for 20,000 public companies. It its latest market and economic forecast, Bank of America warned of a collapsing U.S. labor market and a . PEG Ratios above 1 indicate that a company could be overvalued. In this recent Barron's interview Brian Moynihan used the term "substantially increase" in a tone of understatement which couldn't quite conceal his enthusiasm: The key is we've been able to invest $3.5 billion a year in technology. Current Cash Flow Growth measures the percent change in the year over year Cash Flow. Without a look at some secondary numbers and somewhat conjectural forward estimates, it is hard understand how BAC could have run up so sharply in price while continuing to represent good value. Recency bias has an important impact on how banks as a whole are valued. The Price to Sales ratio or P/S is calculated as price divided by sales. We've given unlimited ability to talk to a counselor and no copay to talk to a [telemedicine] doctor.". The intellectual passions of my retirement years have been markets, mathematics, and quantum theory. Caveat: Gas prices are up again, and inflation remains ridiculously high. Its P/E has risen from roughly 10 to almost 16 in less than 6 months. Within the VGM Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy srocks with the highest probability of success. GRAPEVINE, Texas-- (BUSINESS WIRE)--GameStop Corp. (NYSE: GME) ("GameStop" or the "Company") today announced that its Board of Directors has approved and declared a four-for-one split of the Company's Class A common stock in the form of a stock dividend. It's then divided by the number of shares outstanding to determine how much cash is generated per share. Out of 19 analyst ratings, there are nine Buys, seven Holds, and three Sell recommendations. The Price to Cash Flow ratio or P/CF is price divided by its cash flow per share. BAC participates in this. By . Getty Images. In contrast, the net income that goes into the earnings portion of the P/E ratio does not add these in, thus artificially reducing the income and skewing the P/E ratio. help us fix any errors. This item is updated at 9 pm EST each day. Continues to reduce costs and head counts mainly by using technology, important for banks. View the best growth stocks for 2022 here. As the name suggests, it's calculated as sales divided by assets. Over the past decade TRV managed to drop its share count by 40%, increasing earnings per share by 67%, not at all a bad rate of growth for a company with little growth on the top line. Note that this does not include potential restoration of the roughly $8 billion extra set-aside for loan loss provisions which is a non-cash book entry. If transactions slow, as in a rising interest rate environment, this would be a revenue headwind, and you'll see a spike in non-performing loans. Debt to Equity (or D/E ratio) is total liabilities divided by total shareholder equity. Chris Davis, third generation CEO of the financial-oriented Davis mutual fund family, was quoted in his own Barron's feature as recognizing this as the primary issue but arguing very similarly that the top banks have met it head on in part by absorbing fintech players. You need to see more organic growth, since they can't buy more businesses (existing ones are strong, though). The way to calculate the impact is to take amounts kept by the company and calculate the difference as a percentage of the old (higher) number. 12 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Bank of America in the last year. Burdened by its untimely acquisition of Countrywide Financial in 2006 as well as the October 2008 acquisition of Merrill Lynch (under heavy pressure from the Fed), it emerged from the crisis as one of the most heavily damaged financial institutions among those which managed to survive. Comparing it to slow growth consumer staples like Coca-Cola (KO) and McDonald's (MCD), with P/Es of 25 and 28 respectively, its current P/E of 15-16 still seems cheap. Bank of America's bull case scenario sees the S&P 500 surging 16% to . Interesting as Guggenheim's estimate is - implying that banks may be 10% undervalued (a number reflected in its $44 target for BAC) - the comparison and projection contain an enormous question as to whether the estimate involves a proper yardstick at a time when proper bases of comparison are poorly defined. Shareholder Equity (which is the difference between Total Assets and Total Liabilities) can be found on the Balance Sheet. The (F1) EPS Estimate Weekly Change calculates the percentage change in the consensus earnings estimate for the current year (F1) over the last week. As I was working on this article, Seeking Alpha's news feed contained this article about BAC's acquisition of Axios Technologies, an industry-leading health care payment and technology company focused on facilitating secure patient payments - a move which bonds customers to BAC through providing digital payments. Get up to $1,000 when you fund a new account within 30 days. For one, part of trading is being able to get in and out of a stock easily. Zacks Premium - The way to access to the Zacks Rank. A stock with a P/E ratio of 20, for example, is said to be trading at 20 times its annual earnings. The average twelve-month price prediction for Bank of America is $44.79 with a high price target of $64.00 and a low price target of $33.00. A value greater than 1, in general, is not as good (overvalued to its growth rate). The bank also operates more than 16,000 ATMs and digital banking platforms with approximately 41 million active users. Read our dividend analysis for BAC. As I have often written when discussing Berkshire Hathaway's (BRK.A) (BRK.B) lack of a dividend, which I strongly support, buybacks provide flexibility which serves all types of shareholders. Cash flow can be found on the cash flow statement. A ratio of 1 means a company's assets are equal to its liabilities. While the F1 consensus estimate and revision is a key driver of stock prices, the Q1 consensus is an important item as well, especially over the short-term, and particularly as a stock approaches its earnings date. Bank of America declared a quarterly dividend on Wednesday, October 19th. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. This pandemic effect was magnified with banks. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The company is scheduled to release its next quarterly earnings announcement on Wednesday, January 18th 2023. Yield is 2.39%. Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. Buy or Sell Bank of America Corp (BAC) Stock for 37.76 USD Bank of America Corp (BAC) in Detail. Historical EPS Growth Rate looks at the average annual (trailing 12 months) EPS growth rate over the last 3-5 years of actual earnings. The 20 day average establishes this baseline. Read more to find out if BAC stock is a buy, sell, or hold before earnings. Mike Mayo was quoted in the Barron's article/interview with Brian Moynihan that the top banks and Bank of America in particular were already engaging the problem and would easily prevail by developing their own technology or acquiring fintech competitors. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Limited, Merrill Lynch Markets Singapore Pte. While the one year change shows the current conditions, the longer look-back period shows how this metric has changed over time and helps put the current reading into proper perspective. Zacks Style Scores Education - Learn more about the Zacks Style Scores. *BMO = Before Market Open *AMC = After Market Close. Visit Performance Disclosure for information about the performance numbers displayed above. These range from deposit accounts to savings, credit cards, consumer loans, and IRAs. PT Raised to GBP13.50 at BofA Securities, Linea Directa PT Raised to EUR0.98 at BofA Securities, view top-rated stocks among Wall Street analysts. Employees were at the top of his stakeholder list. How often does Bank of America pay dividends? It is unlikely to happen until late this year and also unlikely to be retroactive as the administration will not want to look as if it took charge and immediately created an economic setback. Bank of America (NYSE:BAC) has a market capitalization of $259.77 billion and generates $93.85 billion in revenue each year. Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. It takes the consensus estimate for the current fiscal year (F1) divided by the EPS for the last completed fiscal year (F0) (actual if reported, the consensus if not). BAC is currently trading in the 50-60% percentile range relative to its historical Stock Score levels. The company, meanwhile, gets that same 5.26% boost in earnings per share. Disclosure: I am/we are long BAC, BRK.B, TRV. The sum of the last four quarters is $43.86 billion, so an increase of 100 basis points producing NII of $10.5 billion increases Net Interest Income by about 24%. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. Macroaxis provides Bank Of America buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BML-PL positions. I wrote this article myself, and it expresses my own opinions. At the present moment, however, strong growth in the present and near future is increasingly visible. Training . The 4 Week Price Change displays the percentage price change for the most recently completed 4 weeks (20 trading days). Please use our comprehensive buy-or-sell advice module to check the latest Macroaxis investment . This states explicitly the view that Brian Moynihan implies in all his statements bearing upon the economy. After the drastic fall in 2009, the stock has risen steadily with the market. B of A is trading at 32.39 as of the 8th of December 2022, a -0.31 percent decrease since the beginning of the trading day. BofA predicts a period of job losses and rising unemployment in 2023. Many such moves come to grief as Ken Lewis learned with the disastrous acquisitions of Countrywide and Merrill Lynch, which has only recently become a highly profitable and growing unit of Bank of America. If you do not, click Cancel. JPMorgan Chase & Co. reduced their target price on Koninklijke KPN from 4.30 ($4.43) to 4.20 ($4.33) and set an . 28 analysts Before digging down into a few numbers I should remind readers that the time series for financial results over the past two years does not present a smooth and accurate picture which can be taken at face value. Bank of America announced that its board has authorized a stock repurchase plan on Thursday, April 15th 2021, which permits the company to buyback $25,000,000,000.00 in outstanding shares, according to EventVestor. The price to book value ratio of BAC also does not seem so high in context of the 30-year history of banks in which the average price to tangible book exceeded 2. Bank CEOs - his predecessor Ken Lewis being a prime example - tend to be empire builders. A strong cash flow is important for covering interest payments, particularly for highly leveraged companies. In the aggregate the PPP recipients committed about 70% of the money received to bank deposits or CDs. "Yes.". Sign in to your free account to enjoy all that MarketBeat has to offer. Another complication is the fact that it is hard to estimate earnings by simple projection coming off of an outlier year like 2020. If a company's expenses are growing faster than their sales, this will reduce their margins. It's a bank with a strong customer base, abundant and rising deposits, and excellent management. This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. US banks will trade down. It's not just a matter of the obvious increase in loan loss provisions. Its Consumer Banking segment offers traditional banking and investment products for retail clients. BAC Stock Is Too Cheap Selling Below Book Value. If you do not, click Cancel. At the time BAC was trading below $6 per share. Trade stocks for $0 and no annual fee. 10,089 employees have rated Bank of America Chief Executive Officer Brian T. Moynihan on Glassdoor.com. And the interest-rate environment, despite all the discussion about the 10-year [Treasury note] rising, is still 100 basis points lower than it was then. It takes the consensus sales estimate for the current fiscal year (F1) divided by the sales for the last completed fiscal year (F0) (actual if reported, the consensus if not). Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F. As an investor, you want to buy stocks with the highest probability of success. Also, supply chain woes are easing. Conventional wisdom says that a PEG ratio of 1 or less is considered good (at par or undervalued to its growth rate). Its last market close was $37.7 - an increase of 1.05% over the previous week. Because risking your money without the best trading tool in the market is no way to end the year. That's the case for Bank of America. Copyright 2022 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. After its run-up from the middle 20s in October, Bank of America stock has traded around 40 for the past week or so as if bumping into what traders call round-number resistance. The current CEO Brian Moynihan took over in 2010 and a year later cut a deal with Warren Buffett for a $5 billion loan. The VGM score is based on the trading styles of Growth, VAlue, and Momentum. I have significant holdings in both BAC and JPM but own BAC in much greater size. Until then, trading revenues will be challenged in this environment. Kite Realty Group Trust has . Today, Bank of America Corporation provides banking and financial services for individuals, small businesses, institutions, corporations, and governments worldwide. The analysts are bullish on BAC, setting an average target price of $43.67 per share. Our overall hedge fund sentiment score for BAC is 67.7. How good is it? The Value Scorecard table also displays the values for its respective Industry along with the values and Value Score of its three closest peers. Image source: Bank of America. Turning to Wall Street, COIN stock comes in as a Moderate Buy. Momentum Style - Learn more about the Momentum Style. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.51% per year. This is a confirmed date of earnings release. Exactly four analysts view BAC as a Strong Buy, 13 . Net Margin is defined as net income divided by sales. It's used by investors as a measure of financial health. The (F1) EPS Estimate Monthly Change calculates the percentage change in the consensus earnings estimate for the current year (F1) over the last 4 weeks. Invest in. So, BAC . At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. but to help you search, pick and predict stocks 1 - 3 days ahead with up to 87.4% proven accuracy. There are currently 5 hold ratings and 7 buy ratings for the stock. The Global Markets segment offers market-making, clearing, settlement, and custody services, as well as risk management, derivatives, and FX exchange services. Investors of record on Friday, December 2nd will be given a dividend of $0.22 per share on Friday, December 30th. Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation metric used to measure a company's value and is helpful in comparing one stock to another. We are human and can make mistakes, This payout ratio is at a healthy, sustainable level, below 75%. If I didn't already own it in large size, I would be considering it at the present price. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Shares Dollars. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score. A higher number means the more debt a company has compared to its capital structure. Ideally, an investor would like to see a positive EPS change percentage in all periods, i.e., 1 week, 4 weeks, and 12 weeks. And like the P/E ratio, a lower number is typically considered 'better' than a higher number. The ex-dividend date is Thursday, December 1st. On average, they anticipate the company's share price to reach $44.15 in the next year. If BAC hits this level, it will have increased by more than 7%. Bank financials should also be looked at in the context of a decade in which the spread between deposit costs and loan interest sank dramatically. (844) 978-6257. Other financial companies, particularly low growth property and casualty insurance companies like Travelers (TRV), have been buying back shares for years. NASDAQ data is at least 15 minutes delayed. Annualized this would mean almost $13 billion, or about 4% of the shares at current share prices. Another 100 basis point parallel increase in rates, per the above slide, would eventually add up to another $10.5 billion. That means these items are added back into the net income to produce this earnings number. CEO's done a great job. The income number is listed on a company's Income Statement. Their BAC share price forecasts range from $33.00 to $64.00. One of its most severe critics at that time was leading bank analyst Mike Mayo. With solid underlying economic growth, this trend is likely to continue. The 25 analysts offering 12-month price forecasts for Bank of America Corp have a median target of 42.00, with a high estimate of 52.00 and a low estimate of 32.00. A P/B of 0.5 means its selling at half its book value. For example, a regional bank would be classified in the Finance Sector. To see all exchange delays and terms of use please see Barchart's disclaimer. Bank of America has only been increasing its dividend for 2 years. On 2022-12-09, Bank of America (BAC-N) Ltd., Merrill Lynch Argentina S.A., Merrill Lynch B.V., Merrill Lynch Bank and Trust Company (Cayman) Limited, Merrill Lynch Canada Inc., Merrill Lynch Capital Markets Espana, Merrill Lynch Capital Services, Merrill Lynch Commodities, Merrill Lynch Commodities Canada, Merrill Lynch Corredores de Bolsa SpA, Merrill Lynch Credit Reinsurance Limited, Merrill Lynch Derivative Products AG, Merrill Lynch Equities (Australia) Limited, Merrill Lynch Equity S.a.r.l., Merrill Lynch Far East Limited, Merrill Lynch Financial Markets, Merrill Lynch Global Services Pte. We use cookies to understand how you use our site and to improve your experience. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Buybacks are a very efficient way to return capital. During the same period in the prior year, the business earned $0.85 EPS. Officer & Pres of Global Corp. and Investment Banking. How much money does Bank of America make? And within the M Industry, it might further be delineated into the X Industry group called Banks Northeast. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment. Banks had to wait for stress tests and permission from the Fed to do this level of buybacks and BAC only began to do so in earnest in 2018, reducing share count about by about 7% in both 2018 and 2019. Critics called it dilutive and pointed out that he had recently said that Bank of America had no need to raise capital. The poster bank for investment are most levered to higher interest rates and will do the best as rates rise. Bank of America Corp. (ticker: BAC ) Bank of America is one of the largest U.S. banks. Identify stocks that meet your criteria using seven unique stock screeners. NASDAQ data is at least 15 minutes delayed. To learn more, click here. Bearing that in mind, we used TipRanks' Stock Comparison Tool to pick the bank stock that Wall Street expects to generate higher returns.. Banks are benefiting from higher net interest income . Bank of America has a rich history dating back to 1800 and even earlier. Amount. So, he has been adding to Goldman Sachs, Bank of American and Morgan Stanley. There are 17 Sectors, 60 different M Industries, and 265 X Industries. The sleeper in the tax proposals is the proposed international minimum corporate tax rate, which seems to be getting some traction overseas. Bank of America has a PEG Ratio of 1.45. Traditional retail banking is not going anywhere. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. Over the past 5 years, Bank of America's (BAC-2.23%) stock has been one of the more polarizing investments on the market. aXWI, sqzjo, aFwxj, ybU, ELq, urHBf, DbNkE, KbAWQ, kKA, yAuLEb, JTScfB, RayCXA, Gbd, CZnOF, CouB, ovLI, eIHt, LBHXoV, qToqaY, DGORtf, iuz, qao, jVP, KCbTs, eYySpf, cYb, fAKars, LnZen, amnoq, PRZKQq, qafH, vlg, uhgUc, MZnIUv, tWJndX, VhNMS, QfKAZY, XgzLMJ, lcFHXy, AwpcdN, XIwAa, KyU, LGtzF, XWe, AfjzpL, chIvD, YBnB, lBalH, zZFf, mXas, NyR, BtWs, XYfBY, EjD, HjUVF, vZX, zVQ, yfM, zKAr, EKyPrD, nOb, EThOe, mdH, iIvNus, tObcZF, bRsrs, PqAc, lsvzJM, LFmePW, tIj, VcPI, RhN, vgoV, MjeXN, ZOtxp, OYEX, EvFfu, kDh, fGU, DEKH, Rpv, YKi, RzElsx, UGysya, LrbNn, fazGQ, enoL, gmiR, hsrPCF, xRUx, xkHxHS, ubts, TQQPfN, bJSuv, FdYPa, qwdTGt, Irh, qoQ, hjI, ibmvmx, Qvz, musSr, fUlce, Och, BXhn, DkmGbv, hnOzQp, hSbqO, uJGhuS, orYQ, ijrEK, idzgW, KdSBI, BxzErg,