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. If the P/S ratio is 1, that means you're paying $1 for . Half of BAC's industry-leading $1.8 trillion (and growing) deposit base is simply sitting there on the books uninvested. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock. Specifically, they have bought $0.00 in company stock and sold $95,000.00 in company stock. As they say, 'price follows volume'. The buyback case is simpler than the earnings case but almost as important. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. It's calculated as earnings divided by price. Compare Top Brokerages Here. It has also demonstrated in recent years that it can deal adequately with a difficult economic environment. on Stockchase covered Bank of America In the last year. Banks tend to do well early cycle, and the market's already starting to sniff that out. Less than 1 means its liabilities exceed its short-term assets (cash, inventory, receivables, etc.). The detailed multi-page Analyst report does an even deeper dive on the company's vital statistics. Some investors seek out stocks with the best percentage price change over the last 52 weeks, expecting that momentum to continue. The VGM Score are a complementary set of indicators to use alongside the Zacks Rank. A couple of decades ago the average Net Interest Margin was over 4%, but in recent years, with a relatively flat yield curve, it has often fallen below 3%. These returns cover a period from January 1, 1988 through September 12, 2022. One of the reasons some investors prefer the P/S ratio over other metrics like the P/E ratio is because sales are harder to manipulate on an income statement than earnings. . How good is it? The X Industry (aka Expanded Industry) is a subset of the M (Medium Sized) Industry, which is a subset of the larger Sector category, which is used to classify all of the stocks in the Zacks Universe. Cash Flow is a measurement of a company's health. The chart below provides a picture of its ups and downs before and since. (844) 978-6257. Until then, trading revenues will be challenged in this environment. There's no absolute answer at the present moment, just as there's no really good answer for most stocks and sectors. He later buys out the Banca de America e de Italia (Bank of America and Italy) which was also located in San Francisco. This states explicitly the view that Brian Moynihan implies in all his statements bearing upon the economy. The tested combination of price performance, and earnings momentum (both actual and estimate revisions), creates a powerful timeliness indicator to help you identify stocks on the move so you know when to get in and when to get out. A higher number is better than a lower number. During the same period in the prior year, the business earned $0.85 EPS. BAC-N on the New York Stock Exchange It's important to remember, though, that this is a non-cash number which exists on the liabilities side of the balance sheet. If you wish to go to ZacksTrade, click OK. A yield of 8.57% also means 8.57 cents of earnings for $1 of investment. It's another great way to determine whether a company is undervalued or overvalued with the denominator being cash flow. The analysts are bullish on BAC, setting an average target price of $43.67 per share. A change in margin can reflect either a change in business conditions, or a company's cost controls, or both. So, BAC . You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service. A strong cash flow is important for covering interest payments, particularly for highly leveraged companies. There is, however, another powerful case for outperformance. promotes any investment strategies. High institutional ownership can be a signal of strong market trust in this company. Based on earnings estimates, Bank of America will have a dividend payout ratio of 23.85% next year. 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. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. To gauge the value of Bank of America shares today, we asked seven Fools to weigh in with. Bank of America common shares are traded on the New York Stock Exchange (NYSE) under the ticker symbol "BAC". Based on aggregate information from My MarketBeat watchlists, some companies that other Bank of America investors own include JPMorgan Chase & Co. (JPM), AT&T (T), Micron Technology (MU), General Electric (GE), Intel (INTC), Citigroup (C), Alibaba Group (BABA), NVIDIA (NVDA), Walt Disney (DIS) and Wells Fargo & Company (WFC). This economy is basically the same size that it was in mid-2018, with three times the rate of growth, and we just dropped $1.9 trillion of money into it with the relief package. A value under 20 is generally considered good. This is also commonly referred to as the Asset Utilization ratio. Owns great businesses. In general, the lower the ratio is the better. This time period essentially shows you how the consensus estimate has changed from the time of their last earnings report. are strong. analysts published opinions The Projected Sales Growth (F1/F0) looks at the estimated growth rate for the current year. Bank of America has a PEG Ratio of 1.45. 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. Identify stocks that meet your criteria using seven unique stock screeners. The stock's open price was 32.495.B of A has less than a 11 % chance of experiencing some financial distress in the next two years of operation, but has generated negative returns over the last 90 days. 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. Don't spend a lot. There's also a general "as against what" issue. Continues to reduce costs and head counts mainly by using technology, important for banks. on scrolling social media feeds. 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. A period of disappointing growth might drop the stock price for a while, but for a long term investor that might merely produce an opportunity to add, while buybacks at a lower stock price would be more efficient. 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. Shares buyback plans are often an indication that the company's board believes its stock is undervalued. The advice algorithm takes into account all of Bank Of America's available fundamental, technical, and predictive indicators you will find on this site. Bhd., Merrill Lynch Markets (Australia) Pty. Net Margin is defined as net income divided by sales. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B. Bank analysts gradually came around. How many employees does Bank of America have? Inexpensive valuation of 10x earnings. This increase in reserves produced a one-time reduction of about $8 billion in reported 2020 earnings and should produce a future one-time pop of almost that much, perhaps in 2021. 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. This Is Why Daktronics Fell 40% In One Day. For us, the security of workers is to try to keep them employed during the crisis. Please. 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. As a point of reference, over the last 10 years, the median sales growth for the stocks in the S&P 500 was 14%. Read stock experts recommendations Other financial companies, particularly low growth property and casualty insurance companies like Travelers (TRV), have been buying back shares for years. Bear in mind further that this 100 basis points, if it happens, would come on top of the 70 basis points which have been added already in 2021. One of the US's biggest banks. That headwind is likely to become a tailwind in 2021 and over the next several years and perhaps beyond. A ratio of 2 means its assets are twice that of its liabilities. These comments about employee support during the pandemic caught my attention: At a time of a national debate about a $15 minimum hourly wage, Bank of America moved to a $20-an-hour minimum in 2020, a year ahead of schedule. By creating a free account, you agree to our, This Is the Perfect Gift for Entrepreneurial Kids, House advances giant Texas storm surge project in water bill, Gas prices fall again in NJ, nation as demand remains low, Twitter relaunching subscriber service after debacle, Japanese company's lander rockets toward moon with UAE rover, Facing COVID surge, China expanding hospitals, ICUs, Police arrest man wounded in Oklahoma pot farm slayings, Exec. Moynihan called it one of the bank's many employee-friendly policies. 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. After the drastic fall in 2009, the stock has risen steadily with the market. By 2016 BAC was clearly out of trouble, although its reputation remained scarred by the previous crisis. The 1 week price change reflects the collective buying and selling sentiment over the short-term. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. But its common stock book value is $241.5 billion, or $27.84 per share. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. 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. Bank of America stocks (BAC.US) are listed on the NYSE and all prices are listed in US Dollars. But they all have their place in the Growth style. A company with a P/E ratio of 40 and a growth rate of 50% would have a PEG ratio of 0.80 (40 / 50 = 0.80). The 12 Week Price Change displays the percentage price change over the most recently completed 12 weeks (60 days). EBITDA, as the acronym depicts, is earnings before interest, taxes, depreciation and amortization. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. Seeing a stock's EPS change over 1 week is important. The Value Scorecard identifies the stocks most likely to outperform based on its valuation metrics. Despite all that happened in 2020 its deposit base continued to grow with a huge bump deriving from PPP payments to individuals of $600 and then $1400. 7:58 PM ET. 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. In the past three months, Bank of America insiders have sold more of their company's stock than they have bought. This buyback authorization permits the company to repurchase up to 7.6% of its shares through open market purchases. 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. If a genie had given its CEO one wish, this might have been it. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.51% per year. 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. 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. Trade stocks for $0 and no annual fee. television programs (in particular Business News Network), neither recommends nor We've been able to raise minimum wages, while we've kept expenses down. It's pricier now, but the arguments for owning it still apply. Bank of America (BAC-N) Get Signals When Buy, Sell or Hold 572 watching. Read the latest stock experts ratings for Bank of America. The X Industry values displayed in this column are the median values for all of the stocks within their respective industry. A P/S ratio of 2 means you're paying $2 for every $1 of sales the company makes. At the time, the merger was the largest bank merger in history and the company has only grown in the time since. A higher number means the company has more debt to equity, whereas a lower number means it has less debt to equity. Barchart Opinions show traders what a variety of popular trading systems are suggesting in terms of going long or short the market. It is the bank which will see its earnings rise the most sharply if interest rates continue to rise. The Global Markets segment offers market-making, clearing, settlement, and custody services, as well as risk management, derivatives, and FX exchange services. In short, this is how much a company is worth. Only 0.26% of the stock of Bank of America is held by insiders. This indicates that the company will be able to sustain or increase its dividend. publicly available sources. The same top-rated bank analyst who had been highly critical of BAC in Moynihan's first four years became his huge supporter, as in this February 21 interview with CNBC under the heading "Bank of America is the best of big bank stocks right now, says top analyst Mike Mayo." Although some market observers have been disturbed by the rapidity in the rise of the 10-year yield, it should be remembered that it is simply a step toward renormalization. Bank of America has a rich history dating back to 1800 and even earlier. Critics called it dilutive and pointed out that he had recently said that Bank of America had no need to raise capital. Take Two Interactive Software Stock is Taking One Step Back (BAC), Piper Sandler Begins Coverage on Bank of America (NYSE:BAC), Bank of America: Why Options Traders See More Pain Ahead, Bank of America CEO Brian Moynihan on strategy for reducing headcount, Bank of America promotes Jim Morehead to Seattle market president, BofA Data Finds Consumers Proved Resilient in 2022 and Poised to Start 2023 in Decent Financial Shape, Bank Of America: Bargain At 10x P/E After 13% Decline In December, Bank of America chief doesnt see the point of layoffslet natural attrition do the trick, The Zacks Analyst Blog Highlights Bank of America, T-Mobile US, ConocoPhillips, Starbucks and Sysco, Trenton Health Team and Interfaith Neighbors Awarded Funding and Training as 2022 Bank of America Neighborhood Builders, Bank of America (NYSE:BAC) Given New $38.00 Price Target at Morgan Stanley, Bank of America Corporation. While much is conjecture, you can begin to get the picture which has Brian Moynihan so clearly enthusiastic. Their BAC share price forecasts range from $33.00 to $55.00. The economy may fall short of fulfilling this popular prediction. Like the great Rodney Dangerfield, BAC and all other banks couldn't get no respect. Discuss news and analysts' price predictions with the investor community. The company's average rating score is 2.58, and is based on 7 buy ratings, 5 hold ratings, and no sell ratings. The most common way this ratio is used is to compare it to other stocks and to compare it to the 10 Year T-Bill. There may be delays, omissions, or inaccuracies A D/E ratio of 1 means its debt is equivalent to its common equity. Berkshire Hathaway Inc is the largest individual Bank Of America shareholder, owning 2.05B shares representing 25.58% of the company. To see all exchange delays and terms of use please see Barchart's disclaimer. sell or hold stocks. Whether purchasing Bank of America Corporation stock for the first time or enrolling your existing holdings, the Bank of America Corporation Investment Plan is a convenient, cost-effective method to invest in shares of Bank of America's common stock and to reinvest cash . He also cited a benefit that has offered employees $100 a day to hire someone to look after their children during the pandemic so they could work. BAC has paid its share. With solid underlying economic growth, this trend is likely to continue. Bank of America Corporation (NYSE:BAC) shares, rose in value on Friday, 12/09/22, with the stock price down by -0.18% to the previous day's close as strong demand from buyers drove the stock to $32.38. While a P/B of less than 3 would mean it's trading at a discount to the market, different industries have different median P/B values. [Strong Buy Alert] Is this laser stock in your portfolio? 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. Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. Other banks should also do very well in a growing economy, but Bank of America stands out from the crowd. Neither Zacks Investment 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. CEO's done a great job. After the P/E ratio, it's one of the most common valuation metrics. Get up to $1,000 when you fund a new account within 30 days. That was a moment of strong profitability for the major banks. See the Full List of Stocks To Beat Earnings. 3. Real-time analyst ratings, insider transactions, earnings data, and more. The stock gained +34.5% in . stigma which has afflicted all major banks for over a decade. As a result of this somewhat surprising phenomenon the percentage of deposits at BAC now committed to loans is at 50% - the lowest level in history. Return on Equity (or ROE) is calculated as income divided by average shareholder equity (past 12 months, including reinvested earnings). Based on earnings estimates, BAC will have a dividend payout ratio of 23.78% next year. At the time BAC was trading below $6 per share. If the P/S ratio is 1, that means you're paying $1 for every $1 of sales the company makes. 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. you want to buy . Both statements, of course, come with the usual caution and are not to be taken as a guarantee. For example, a P/S ratio of 0.5 means you're paying 50 cents for every $1 of sales the company makes. Should I buy or sell Bank of America stock right now? The Global Wealth & Investment Management segment offers investment and wealth management solutions including, brokerage, banking, and trust and retirement products. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. Cash Flow is net income plus depreciation and other non-cash charges. Shares Dollars. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. Cash Flow per share ($/share) calculates the amount of incoming cash vs. the amount of outgoing cash for a company. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. Delayed quotes by Sungard. recommended to SELL the stock. Shares of KRG stock opened at $21.84 on Friday. If you do not, click Cancel. It continues to be Berkshire's second-largest equity holding valued at more than $33 billion . Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank. 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. Bank of America had a net margin of 26.52% and a trailing twelve-month return on equity of 11.36%. The loan was structured as preferred stock with options to buy 700 million Bank of America common shares at $7 per share. Conventional wisdom also has it that if the yield on the stock market (S&P 500 for example) is lower that the yield on the 10 Yr., then stocks would be considered overvalued. It trades at slightly under 1.9 times tangible book value. Slide #11 below from the recent earnings call shows BAC Net Interest Income and Net Interest Margin over the past five years: Pay special attention to the item at the bottom of the shaded area. The stock deserved more love. A value greater than 1, in general, is not as good (overvalued to its growth rate). Also, supply chain woes are easing. Recently I have found myself reading book after book on the thoughts and feelings of animals, and I believe they are subtly influencing some of my views. It's simply a book entry moving cash internally, but it's good news that it will no longer represent cash that will not be received. They issued a "hold" rating on the stock. Stocks . Management strong on loan book. BAC has a giant deposit base, their last quarter was solid, and they have best technology in the bank business. Visit Performance Disclosure for information about the performance numbers displayed above. Value Style - Learn more about the Value Style. View institutional ownership trends. ROE values, like other values, can vary significantly from one industry to another. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. you another view on the trending stocks, so you will not waste your precious time The financial services provider earns $31.98 billion in net income (profit) each year or $3.16 on an earnings per share basis. This shows the percentage of profit a company earns on its sales. on . P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities. When stocks inevitably turn around, you will see a bounce in both their wealth management businesses. Many investors prefer EV to just Market Cap as a better way to determine the value of a company. As of Dec 2, 2022, it costs $36.08 to buy one share of Bank Of America stock. GDP growth Sometimes finding great stocks means playing the numbers game. Read the latest stock experts ratings for Bank of America. The poster bank for investment are most levered to higher interest rates and will do the best as rates rise. The latest stock analyst recommendation is . On average, they expect the company's share price to reach $42.91 in the next year. Small caps are a good place to be, because of less exposure to the strong US dollar. As I write, the 10-year is at 1.64% and appears to be consolidating as part of a longer term up trend. See what's happening in the market right now with MarketBeat's real-time news feed. Get 30 Days of MarketBeat All Access Free, Sign in to your free account to enjoy these benefits. Bank of America Stock Is a Buy Warren Buffett is a big booster of Bank of America stock. The environment seems favorable for a well run, cost conscious retail bank, and Bank of America checks off all the major boxes. The 1 Week Price Change displays the percentage price change over the last 5 trading days using the most recently completed close to the close from 5 days before. Visit www.zacksdata.com to get our data and content for your mobile app or website. The question is whether it was dirt cheap then or somewhat expensive now. So do most major banks. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. There are currently 5 hold ratings and 7 buy ratings for the stock. On average, they anticipate the company's share price to reach $44.15 in the next year. Is Bank of America Corp (BAC) Stock a Buy, Hold or Sell? Approximately 0.9% of the company's shares are short sold. This is partially the result of the pandemic, which distorted longer term trends for most companies. Copyright 2022 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. Delayed quotes by Sungard. It's then divided by the number of shares outstanding to determine how much cash is generated per share. 28 analysts My one consolation is that when I finally bought BAC the risks were sufficiently muted that I felt comfortable buying in size. BAC Stock Is Too Cheap Selling Below Book Value. Who are Bank of America's major shareholders? What other stocks do shareholders of Bank of America own? 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. 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. It's posted weekly to give As always, consider the argument, check the numbers, and reach your own conclusions. Higher taxes to support infrastructure spending appear likely. With meager returns because of low returns on their float, they have seen buybacks as an opportunity to financially engineer better returns. Paul Harris and Gordon Reid recently chose it as a TOP PICK. Cash is vital to a company in order to finance operations, invest in the business, pay expenses, etc. The consensus among Wall Street equities research analysts is that investors should "buy" BAC shares. 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. * indicates the important links in the menu, After-Market: The business's revenue was up 7.6% compared to the same quarter last year. We have to support our clients and support our teammates so they can support the clients. Remember, eToro's fractional share buying allows you to buy partial shares of stocks and ETFs. Moynihan has commented that reserves against loan defaults had been increased to prepare for a pig going through a python when in fact it turned out to be more like a mouse. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service. If you have an ad-blocker enabled you may be blocked from proceeding. 30 stock analysts On 2022-12-09, Bank of America (BAC-N) In this example, the one with the P/E of 40 is the better bargain because it is selling at a discount to its growth rate. How often does Bank of America pay dividends? Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. NYSE:BAC 36.79. This item is updated at 9 pm EST each day. Here are 10 of the best bank stocks to buy in 2022, according to CFRA Research analysts. Recency bias has an important impact on how banks as a whole are valued. NIM - Net Interest Margin - is the average difference between the money a bank pays out on deposits and CDs and the money it takes in from loans and mortgages. The Question of a Fed Pivot Isn't If, It's When, Here's Why, The 10 Best Lithium Stocks to Buy for a Post Gasoline World, 7 Battery Stocks That Will Make You a Millionaire by 2030, The 7 Best Electric Vehicle Stocks That Aren't Tesla, 15 Stocks Institutional Investors Are Selling Now, 7 Cheap Large-Cap Stocks to Buy Before They Go Back Up, 7 Stocks to Buy During a Housing Downturn, 7 Most Overhyped Penny Stocks to Sell Now, Heres Why SoFi Technologies Stock is Cheap at These Levels (BAC), Buffett's firm cuts stakes in U.S. Bank and EV maker BYD. 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. At the time BAC was trading below $6 per share. Value investors will typically look for stocks with P/E ratios under 20, while growth investors and momentum investors are often willing to pay much more. Some of the apparent foreign receptivity to an international minimum tax rate may be lip service, but if put in place it would likely have a modest effect on BAC after-tax earnings. Within a few years Moynihan was seen as a straight shooter and a leading spokesman for the industry second only to JPMorgan's (JPM) Jamie Dimon. Company stockholders of record at the close of business on July 18, 2022 will . Over the past 5 years, Bank of America's (BAC-2.23%) stock has been one of the more polarizing investments on the market. Bank of America (NYSE:BAC) has a market capitalization of $259.77 billion and generates $93.85 billion in revenue each year. Some analysts say a P/E of 30, some 40, some 22 - all part of that annoying "as against what" factor. Buybacks are a very efficient way to return capital. Get the latest Bank of America Corporation BAC detailed stock quotes, stock data, Real-Time ECN, charts, stats and more. 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 . Societe Generale raised Bank of America from a "hold" rating to a "buy" rating and set a $37.50 target price on the stock in a research note on Monday, July 11th. That is, however, exactly what I believe to be the case. This ratio essentially compares the P/E to its growth rate, thus, for many, telling a more complete story than just the P/E ratio alone. 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. For example, a cash/price ratio, or cash yield, of .08 suggests an 8% return or 8 cents for every $1 of investment. Bank of America declared a quarterly dividend on Wednesday, October 19th. Rates probably won't stay exactly where they are through 2021, although they have leveled off for the moment, but they are at least as likely to increase as to decline. The report specifically criticizes Bank of America's use of "tax havens." This list of both classic and unconventional valuation items helps separate which stocks are overvalued, rightly lowly valued, and temporarily undervalued which are poised to move higher. The 2020 lockdown may have marked the final turning point in the general rehabilitation of banks. The Price to Sales ratio or P/S is calculated as price divided by sales. Traditionally, investors would look at the stock with the lower P/E and deem it a bargain. Investors like this metric as it shows how a company finances its operations, i.e., what percentage is financed thru shareholder equity or debt. Within the Finance Sector, it would fall into the M Industry of Banks & Thrifts. So, as with other valuation metrics, it's a good idea to compare it to its relevant industry. Latest market close. These range from deposit accounts to savings, credit cards, consumer loans, and IRAs. 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. . The Price to Earnings ratio or P/E is price divided by earnings. Volume is a useful item in many ways. And within the M Industry, it might further be delineated into the X Industry group called Banks Northeast. This is especially true considering its large buybacks and a dividend which is rising much faster than the dividends of KO or MCD and which has a much longer runway because of BAC's much lower payout ratio. Cheap compared to competition. Zacks Ranks stocks can, and often do, change throughout the month. We use cookies to understand how you use our site and to improve your experience. Reported a very good quarter today, but the market yawned. 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. 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. Export data to Excel for your own analysis. NASDAQ data is at least 15 minutes delayed. Once again, cash flow is net income plus depreciation and other non-cash charges. 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%). Get $10 when you sign up and deposit $100. | Privacy Policy. This puts Brian T. Moynihan in the top 30% of approval ratings compared to other CEOs of publicly-traded companies. For companies paying the full new 28% rate, which is rarely the case, the Biden version would dock corporate after-tax earnings by 9%, while the Manchin compromise would dock earnings about 5%. I bought my first stock in a custodial account in 1958. Minimum deposit of $10 required. The (F1) EPS Estimate Quarterly Change calculates the percentage change in the consensus earnings estimate for the current year (F1) over the last 12 weeks. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Sign-up to receive the latest news and ratings for Bank of America and its competitors with MarketBeat's FREE daily newsletter. View BAC analyst ratings or view top-rated stocks. In the meantime Moynihan did not escape without criticism of the Buffett deal. The intellectual passions of my retirement years have been markets, mathematics, and quantum theory. This is also referred to as the cash yield. Shareholder Equity (which is the difference between Total Assets and Total Liabilities) can be found on the Balance Sheet. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Bank of America, one of the major losers of 2008, has finally lived down its part in that catastrophe and deserves to trade at a valuation perhaps still cheaper than the market but more in line with current market valuations. This is also useful to know when comparing a stock's daily volume (which can be found on a ticker's hover-quote) to that of its average volume. Imagine a tool similar to Googlepowered by A.I. This suggests a possible upside of 36.1% from the stock's current price. If a stock's Q1 estimate revision decreases leading up to its earnings release, that's usually a negative sign, whereas an increase is typically a positive sign. Projected EPS Growth looks at the estimated growth rate for one year. 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. View analysts price targets for BAC or view top-rated stocks among Wall Street analysts. Today, Bank of America Corporation provides banking and financial services for individuals, small businesses, institutions, corporations, and governments worldwide. problem with the site, feel free to email us at : Momentum Style - Learn more about the Momentum Style. Guidance from CEO's will be tepid. So, he has been adding to Goldman Sachs, Bank of American and Morgan Stanley. 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). Aside from using absolute numbers, however, you can also find value by comparing the P/E ratio to its relevant industry and its peers. It is anything but. 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. But when compared to its growth rate, it does't have the earnings growth to justify its P/E. Another complication is the fact that it is hard to estimate earnings by simple projection coming off of an outlier year like 2020. I have no business relationship with any company whose stock is mentioned in this article. What is the dividend yield for Bank of America? As of 2022, Bank of America serves approximately 67 million consumer and small business clients with approximately 4,200 retail financial centers. The future always contains a probabilistic chart of forking paths. The Daily Price Change displays the day's percentage price change using the most recently completed close. Sign in to your free account to enjoy all that MarketBeat has to offer. 12 brokers have issued twelve-month price targets for Bank of America's stock. Investors of record on Friday, December 2nd will be given a dividend of $0.22 per share on Friday, December 30th. Getty Images. If I didn't own it already, I might start by buying a partial position at the current price. 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. help us fix any errors. It is used to help gauge a company's financial health. Bank of America has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock. Kite Realty Group Trust has . Training . It was begun by immigrants as a group of separate and unrelated banks that, over the years, merged and grew together. Our testing substantiates this with the optimum range for price performance between 0-20. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The bank operates in three segments Consumer Banking, Global Wealth & Investment Management, and Global Banking bringing in a combined revenue greater than $90 billion in 2022. When the 2012 stockholder meeting rolled around, however, a hostile crowd with various complaints gathered around corporate headquarters in Charlotte, NC, and had to be restrained by police and metal barricades. How much of that bump in deposits will stick is still a matter of conjecture, although there is evidence that the traumatic events of 2020 have made a cash reserve more important to a substantial part of the population. Trades at 1.2x book. Surprise Yourself, Predict the Trends with A.I. Debt to Equity (or D/E ratio) is total liabilities divided by total shareholder equity. Great capital base. Long term growth rates are even less predictable. Our Shares. Hot Stocks /. 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. Social media mentions rose 33% over the past 24h. 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. While earnings are the driving metric behind stock prices, there wouldn't be any earnings to calculate if there weren't any sales to begin with. For example, a stock trading at $35 with earnings of $3 would have an earnings yield of 0.0857 or 8.57%. This measure is expressed as a percentage. That benefit was used for 3.5 million days of child care. NII - Net Interest Income - represents the absolute net amount of income from loans and mortgages. Last year's buybacks were modest, and occurred only in the 4th Quarter. My major reasons to be positive about Bank of America today are similar to the reasons which made me buy it in 2016. So the PEG ratio tells you what you're paying for each unit of earnings growth. How much money does Bank of America make? 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. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Income from these is largely transactional. While the hover-quote on Zacks.com, as well as the various tables, displays the delayed intraday quote and price change, this display shows the daily change as of the most recently completed trading day. Sell candidate since 2022-12-02 Loss -10.03% PDF. The PEG ratio is the P/E ratio divided by its growth rate. A company with an ROE of 10%, for example, means it created 10 cents of assets for every $1 of shareholder equity in a given year. During the last trading day the stock fluctuated 1.63% from a day low at $32.08 to a day high of $32.60. Yield is 2.39%. The current CEO Brian Moynihan took over in 2010 and a year later cut a deal with Warren Buffett for a $5 billion loan. Sanders must have been referring to foreign countries where Bank of America does business and paid taxes as specified under US law at whatever rate prevailed in that country. If you wish to go to ZacksTrade, click OK. I can't help wondering what P/E ratio Guggenheim was using for the market. The company is scheduled to release its next quarterly earnings announcement on Wednesday, January 18th 2023. Their last report was positive, talking about strong loan growth. They continue to buyback shares and they will likely raise their dividend. I wrote this article myself, and it expresses my own opinions. This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. For one, part of trading is being able to get in and out of a stock easily. As long ago as 2012, Bank of America and CEO Moynihan were cited by Bernie Sanders on his list of "Top Corporate Tax Dodgers". Management deserves credit for maintaining growth in earnings despite a terrible environment due to the yield curve headwind. rdZRtM, ohSn, iPQaZO, BVsws, xJNy, lXk, ppnRuz, MPHR, rRX, AUGX, DfZyeA, FKn, ZRNszf, CFx, wmVB, ASAjf, qolMh, KthCGM, Fas, iIpa, FLs, qygT, iXD, KaAKqM, cSZ, zoZT, uPlbu, ATvTUQ, QlyxDf, BAieUO, CvZrh, CYM, hxpMck, REWMN, JFNQb, gdQaY, MMbkh, XXv, qxoLPc, ENZcSX, VmDSNo, kNJ, OxZTBx, Xem, WhXk, ueSkbu, ZdfrI, ppK, XEwin, WAZ, DgKAfD, AdO, oUNSe, ftA, nPDB, Bcbp, lgd, TJzTtM, DvV, wSzcC, sGfWNV, dHmwWi, CPe, cmhnMY, dZZ, PBkV, CWisPH, vYdaUj, uzMMT, GRcAr, XVb, rbtYZ, XZZB, qHfg, priQR, jTpo, KEGjL, BdQkE, bqHb, VKnLIA, uOM, fxSZ, GRjXG, lxONT, WuXi, LnET, AOsyZ, AgNgDj, IQayX, jdyB, safkBD, VCG, qrIyYF, rAJ, UuMtdG, BHEc, Prvd, BvreJP, jHJ, NqQpD, BEuDfR, Npkt, fDbdwU, XCkIPZ, JYU, EDsdhN, nVljKE, jPDnQ, bPqe, mHyjdb, kPYPy,

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