Wednesday, June 29, 2022

Bank of America Corporation (NYSE:BAC) Stock is Plummeting, Here is Why

The Bank of America Corporation (BAC) shares are trading at lower $23.93 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $27.35.

To add more color to this target, the company’s high over the last year is $35.72 and the low is $17.95. Over the last 52 weeks, BAC is down -33.01% while the S&P 500 is down -5.76%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, BAC reported a profit of $12.13 billion. Bank of America Corporation also saw revenues increase to $16.1 billion. In addition, BAC has free cash flow of $19.04 billion as of 03-2020.

BAC booked profit margins of 32.80%, its Return on Equity (ROE) is 9.30%, and its Return on Assets is 0.90%. All told, it is clear that, BAC needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BAC has a short ratio of 1.23 and outstanding shares of 8.82B.

Company Outlook

BAC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 96.08 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.45. Investors should also keep an eye on sector updates as BAC has historically followed its peers on positive news.

All told, Bank of America Corporation BAC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BAC represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Bank of America Corporation BAC is now commanding a market cap of 210.96B and a float of 8.67B. BAC is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BAC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in BAC, either long or short, and we have not been compensated for this article.

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