This is an interesting situation in which investors might be punishing the stock for what happened during the GFC, when in reality the GFC has significantly de-risked the business model. Therefore, scenario 1 (the severe recession) likely wont happen if the 0.4% full year consensus forecast is hit; it involves two low-probability events occurring one after the other. Why did I make this bet, when I knew that people were getting very afraid of Bank of Americas stock? We believe BAC will be able to deliver these. I have no business relationship with any company whose stock is mentioned in this article. The 16% NII growth in 2016-18 was driven by both balance sheet growth and higher rates, with Total Interest-Earning Assets growing 6.1% and Net Interest Yield on Earning Assts growing 8% from 227 bps to 245 bps: BAC Earning Assets & Net Yields (2016-18). BAC income statement history Quarterly Earnings BAC earnings history Dividends 2.48% Yield TTM percentage of income the fund portfolio returned to investors Bank of America Corporation (NYSE:BAC): Payout ratio Payout ratio 25.48% amount of dividends paid out to shareholders relative to the net income BAC dividends history Debt to Assets Q Y You had the $500 million in FDIC that we got landed on us after earnings. Quotes Snapshot > BAC. Hi there, I am Amanda and I work as an editor at impactinvesting.ai; if you are interested in my services, please reach me at amanda.impactinvesting.ai. If you break it down by quarter, there are many ways in which $10,000 could grow to $10,040, as shown in the table below: As you can see, all of these scenarios result in 0.4% full year GDP growth. 01, 2022 9:00 AM ET Bank of America Corporation (BAC) 10 Comments 10. Next, given that the tech sector has crashed so violently, it makes sense that valuations for BAC and other non-tech stocks would fall in sympathy as well. The New Year is upon us, inflation is raging, and geopolitical concerns have investors wondering: Which stocks should I pick for 2022? I expect the stock to re-value higher over the long term - towards an earnings multiple of at least 15x (I would not be that surprised to see the stock approach 20x). If you have an ad-blocker enabled you may be blocked from proceeding. Bank of America's asset quality began to worsen in the second quarter as economic risks such as inflation, a more aggressive interest rate hike cycle from the central bank, and slowing economic growth increased. Zacks' proprietary data indicates that International Business Machines Corporation is currently rated as a Zacks Rank 3 and we are expecting an inline return from the IBM shares relative to the . In my opinion, the only thing that may cause Bank of America's stock to defend a premium book valuation is if a U.S. recession is avoided. When the 1 month treasury has a serious yield on it, things change. Table 1 shows that BACs RWAs-to-total assets ratio is relatively stable. Alpha Spread Bank of America Corp NYSE:BAC Watchlist Manager Summary DCF Valuation Relative Valuation Wall St Estimates Profitability Solvency Financials Discount Rate Price: 32.84 USD -0.48% Updated: Dec 7, 2022 Section: Profitability Summary Bank of America Corp's profitability score is 58/100. Seemingly everybody thinks a recession is coming, and some think that the coming recession will be severe. BAC has demonstrated this during COVID-19. Bank of America Corporation (NYSE:BAC) has scheduled its 3Q-22 earnings report for October 17, 2022, and the bank is expected to show continued deterioration in asset quality, indicating larger credit provisions and loan losses. Yahoo. Bank of America reported a net income of $7.1 billion in 3Q 2022, compared with $6.2 billion in 2Q 2022 and $7.7 billion in 3Q 2021. In its most recent quarter, BAC increased loan loss provisions by $1.5 billion, indicating that it expects an increase in defaults. Interest rates are rising, yet Bank of America stock is still cheap. First, the yield curve reached . There are at least two potential reasons why the stock is down. We believe the post-2018 years represent the real BAC, after it has resumed normal loan growth and regular expense control with the completion of its restructuring following the 2008-9 Global Financial Crisis. Ebbs and flows, but mid-single digits. According to the companys 3Q 2022 financial results, its net income decreased by 8% YoY. Their BAC share price forecasts range from $33.00 to $64.00. Compared to its peer JPMorgan (also Buy-rated; see our review of Q3 2022 results) BAC is more weighted towards U.S. retail banking, its low-cost deposit franchise means it should benefit more from rising interest rates, and it faces less stringent regulatory capital requirements as it continues to grow in size. Please disable your ad-blocker and refresh. Jun. In the third quarter of 2022, Bank of America reported a Tier 1 ratio of 12.8%. Net Interest Income is up 24% year-on-year as of Q3, thanks to the Feds rate hikes and the resumption of loan growth. Seeking Alpha is the #1 website for actionable stock market opinion and analysis, and vibrant, intelligent financial discussion. Headwinds in the U.S. economy suggest that banks asset bases will see deteriorating quality. For the year, Schwabs revenue is up 10.78% and its earnings per share are up 25%. Sensing that the shares were unfairly beaten down, I figured that the apparent risk factors would blow over and that BAC would do again in Q4 what it did in Q3: beat expectations. Buy. I wrote this article myself, and it expresses my own opinions. Its services include vigilance, support, Join the Conversation! BAC has kept its total expenses at $15.3bn in the last 3 quarters, despite elevated inflation, and its Efficiency Ratio has continued to improve (to 62% by Q3), towards to high 50s level that prevailed before COVID-19. Global, long-term, fundamentally-oriented & concentrated investing.With more than 10 years' buy-side experience, I look at stocks globally and across industries, with a focus on the U.S. and U.K.. My investing style can best be described as "Quality Growth" or "Growth At a Reasonable Price".(previously writing under the name "Blue Sky Capital" until December 2019). Set Alert Options Streaming Charts. The companys net reserve release of $1.1 billion in 3Q 2021 turned into a net reserve build of $378 million in 3Q 2022. Looking for a portfolio of ideas like this one? CEO Moynihan said the following on the earnings call: So that's why we have significant reserves in case it's harder landing than people at the Fed would like to engineer. Bank of America Stock (NYSE:BAC), Analyst Ratings, Price Targets, Predictions Analysts publish ratings and price targets on most stocks. BACs noninterest expense of $15.3 billion in 2Q 2022 remained the same in 3Q 2022. And that's why we run the company with such a balance. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Build your trading network; Follow your favorite assets . The stock of Bank of America today trades at a 6% premium to book value, but the premium was significantly bigger at the start of 2022. I have no business relationship with any company whose stock is mentioned in this article. More importantly, we believe BAC earnings have more room to grow than JPMs, as shown by this Q3 snapshot: Q3 P&L JPM vs. BAC (2019, 2021 & 2022). The stock remains cheap even if we assume a severe recession hits and causes earnings and other metrics to decline to 2020 levels (that is, the levels seen during the COVID lows). The companys provision for credit losses increased from $0.5 billion in 2Q 2022 to $0.9 billion in 3Q 2022. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund . In its most recent quarter, Bank of America reported 24% growth in net interest income (NII,) despite the 2/10 year spread being negative at the time. Moynihans statement about an expected 60% decline in fees coincided with last weeks 10% selloff. Forecast target price for 12-13-2022: $ 31.05. BACs Pre-Provision Profit has grown by more than JPMs on both a year-on-year basis and when compared to 2019. Wall Street consensus estimates call for solid double-digit earnings growth beyond 2022. Next, theres the decline in investment banking fees. There are two key risks here. Save my name, email, and website in this browser for the next time I comment. However, scenario 1, in which you get 0.4% GDP growth after wild variance, is extremely improbable. Then we have scenario 2, where growth is fairly even across all the quarters. In the global banking segment, BACs net income increased from $1.5 billion in 2Q 2021 to $2.0 billion in 3Q 2022. Price/Book Comparison, Banks (Seeking Alpha) Since 2010, Bank of America's price-to-book ratio has been on a general upward trend. (JPM has reached G-SIB Bucket 4 while BAC remains in Bucket 3, which means an extra 50 bps in its minimum CET1 ratio.). We keep the assumptions in our forecasts unchanged: Our new 2025 EPS forecast remains unchanged at $4.17: With shares at $32.26, we expect an exit price of $56 and a total return of 82% (22.5% annualized) by the end of 2025. Weve seen inverted yield curves before, they didnt kill BACs margins. Source: BAC results presentation (Q3 2022). Finally, theres scenario 3, in which we get a mild recession at the start of the year followed by a brisk recovery. According to Table 1, BACs Tier 1 ratio decreased from 13.5% in 2020 to 12.2% in 2020. is up 15%. BAC has shown strong execution in growing its deposit base, which has grown double digits year over year. BAC has been a core holding in our portfolio for more than a decade, and we initiated our coverage of BAC on Seeking Alpha with a Buy rating in October 2019. SDG Investors All rights reserved. Consumer And Commercial Portfolios (Bank Of America). The average BANK OF AMERICA CORP stock forecast 2023 represents a -16.61% decrease from the last price of $32.7400016784668. Find real-time BAC - Bank of America Corp stock quotes, company profile, news and forecasts from CNN Business. I wrote this article myself, and it expresses my own opinions. Julian Lin is a top ranked financial analyst. Is this happening to you frequently? Finally, theres brokerage fees. Buy the big winners of tomorrow at stupid cheap prices today. If that happens, margins will start to shrink. Bank of America: Why I Bought The Panic. Estimation of total assets growth is one of the main parts of my valuation. The last reported interest rate at the end of May 31st, 2022, was 1.645%, with $159.750 million outstanding. According to today's jobs data, the U.S. economy added 263K jobs in September, down from 315K in August. With inflation and economic trends straining customers, more of them may default on personal loans that banks like Bank of America were all too pleased to make a year ago. Bank of America Corp BAC:NYSE. The longer that BAC trades at low levels, the greater number of shares it can repurchase over time. I/we have a beneficial long position in the shares of BAC either through stock ownership, options, or other derivatives. Goldman Sachs (GS) thinks that theres a 35% chance of a recession next year, which is below the 65% average estimate from Wall Street Journals surveyed forecasters. Bank of America Corporation (BAC) Stock Price, News, Quote & History - Yahoo Finance S&P 500 Bank of America Corporation (BAC) NYSE - NYSE Delayed Price. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities. In my view, the better metric to track is that of average deposits. Its being caused by a dearth of tech IPOs, which largely stopped happening when tech stocks crashed. It is impressive if not surprising that the stock has recently come close to former levels, as the strong growth since then has helped overcome the immense dilution required during the financial crisis. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Most savers can afford to wait a month until maturity: thats just two pay periods for most people. If you have an ad-blocker enabled you may be blocked from proceeding. In the first quarter, BAC saw earnings come in at $0.80 per share, down from $0.86 per share a year prior - largely due to the fact that the company benefited from releasing credit provisions throughout 2021. I used two approaches to build my way of using the FCFE model for evaluating bank stocks. Certainly, the ever-steepening yield curve inversion looks bad for banks, but the banks borrow short and lend long theory has been failing empirically in recent years. The only catalyst needed is what they've already been doing: aggressively repurchase shares and grow the dividend. On average, they expect the company's share price to reach $44.68 in the next twelve months. An investment in Bank of America, at its heart, reflects cyclical banking exposure. Stocks have gotten cheaper, but if a recession hits, then maybe theyll have to go cheaper still. This means that using the most recent 20 day stock volatility and applying a one standard deviation move around the stock's closing price, stastically there is a 67% probability that BAC stock will trade within this expected range on the day. Are institutional investors happy with Collplant Biotechnologies (USA Stocks:CLGN) technical and fundamental indicators? There arent that many scenarios in which GDP grows 0.4% for the full year but a deep recession occurs in the interim. Then, based on the companys total revenue to total assets ratio (which is relatively stable), and BACs capital Tier 1 ratio, I estimate its net income from 2022 to 2023. If economists average forecast is hit, then well likely get something like scenario 3. I wrote this article myself, and it expresses my own opinions. The 10 year treasury rate and 30 year mortgage rate have quickly returned to 2018 levels. BNY Mellon's asset-management division manages about $2.2 trillion in assets. High conviction investment ideas in the winners of tomorrow. Given the current short-term trend, the stock is expected to rise 13.75% during the next 3 months and, with a 90% probability hold a price between $36.91 and $45.44 at the end of this 3-month period. Hi there, I am Amanda and I work as an editor at impactinvesting.ai; if you are interested in my services, please reach me at amanda.impactinvesting.ai. Please disable your ad-blocker and refresh. Due to exposure to rising short-term rates, BAC won't be able to immediately return to a 2.5% net interest yield, but if interest rates keep rising, then it should move toward that level or higher over the long term. $42.26. This is a stock worth buying on any dip. The average price target represents a 68.83% change from the last price of $3.85. BAC will see some volatility based on interest rates and the strength of the economy, but the long-term trend will be based on its ability to drive an increasing asset base which in turn funds its operating cash flows. The yield curve is certainly more inverted now than it was earlier this year, but thats not the end of the world. However, in the past two years, despite all the macroeconomic challenges, the company was able to make huge profits and develop its operations. You'd think that Bank of America (NYSE:BAC) would be just the perfect stock for this environment, given the rising interest rate environment. Free current stock price quotes and data for Bank of America Corp (BAC). For example, a severe recession and negative full year growth, or no recession at all. At $32.98, BAC stock is trading at 1.55x its Q3 2022 TBV of $21.21. Bank of America pays a generous dividend and is aggressively buying back stock - the two key catalysts for future multiple expansion. In my valuation, I estimate Bank of Americas total assets growth rate from 2022 to 2032, based on the companys performance in the past years and the macroeconomic outlook. According to the first approach of using the FCFE model to evaluate bank stocks, I estimate total assets, total liabilities, Tier 1 ratio, total risk-weighted assets (RWAs), net revenues, and net income of BAC from 2022 to 2032. That was clearly exceptional and, at the other two troughs, BACs P/TBV multiple was around 1.4x: BAC Stock Price & Valuation Troughs (Since 2018). I am not receiving compensation for it (other than from Seeking Alpha). BACs investment banking fees declined 47% last quarter, so weakness in the segment is nothing new. Using the free cash flow to equity (FCFE) model, I evaluate that BAC is worth more than $43 per share. Having looked at various risks and opportunities facing Bank of America in Q4, its time to answer the question I started the article with: Put simply, because Bank of America stock is cheap, and its growing at a decent pace if you exclude PCLs. Bank of America's stock, on the other hand, traded at a discount to book value whenever severe economic disasters occurred. Bank of America Corporation (BAC) Stock Price Today, Quote & News | Seeking Alpha Unlock your with Seeking Alpha Premium today BAC Bank of America Corporation Stock Price &. INDUSTRY, INNOVATION, AND INFRASTRUCTURE, 12. PEACE, JUSTICE AND STRONG INSTITUTIONS, 2 and 10 year treasuries. I wrote this article myself, and it expresses my own opinions. Meaning that as interest rates rise, the leverage costs will also rise for ZTR. How did Martin Luther King use ethos , pathos, and logos? Most likely, BAC underperformed because some news items (e.g. A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Today's Change-0.06 (0.18%) Bid (Size) $32.34 (20) In that scenario, ordinary Americans can go on Treasury Direct and buy one month 3.8% APY bonds that pay 0.3% when they mature. While the stock continues to trade at conservative multiples since the Great Financial Crisis, the company's balance sheet remains very strong due to the greater restrictions placed on it in response to the crisis. If GDP grows .04%, then it reaches $10,040 in 2023. Research news, charts, stock market performance and earnings. BAC Signals & Forecast A buy signal was issued from a pivot bottom point on Thursday, December 08, 2022, and so far it has risen 0.309%. I suspect that these targets reflect skepticism and impatience that BAC can break out of its current multiple range. Price Target. BAC Price Targets Summary Bank of America Corp Wall Street analysts forecast BAC stock price to rise over the next 12 months. Read More Earnings see more Analyst Ratings see more Q How do I buy Bank of New York Mellon (BK) stock? The performance of the stock was mixed when compared to some of its competitors In a short term, a correction is expected to the 0.5 Fibo level with a $34 price target. This means BAC would almost certainly again achieve profitability every quarter and continue to add to its TBV. It is possible that all the stock needs is an earnings boom from rising interest rates, the kind of macro event that could stir enthusiasm in the stock. Given the deterioration in the general economic situation since the publication of 2Q-22 earnings, I believe it is just a matter of time before Bank of America's stock begins to trade at a discount to book value. Excludes $2.07bn First Data JV impairment in 2019. Dividend yield allows investors, particularly those interested in dividend . $BAC - Bank Of America: Bargain At 10x P/E After 13% Decline In December. S Stock Price - SentinelOne, Inc. engages in the provision of endpoint security software that detects, models, and predicts threat behavior to block attacks on any computing device. If we assume a 2.5% net interest yield, then the $2.8 trillion in earnings assets would lead to $67 billion of net interest income. In the third quarter of 2022, notwithstanding a slight decline to 64.83% versus its previous level of 68.9% at the end of 2Q 2022, BACs efficiency ratio is still well higher than its level at the same time in 2021. Something like this could happen, but then there wouldnt be a recession, as the consensus implies. Our return forecasts indicate a total return of 82% (22.5% annualized) by 2025 year-end. Despite trading at just about book value, Bank of America is a value trap in my opinion, and I also believe we have reached a tipping point. We continued to see strong organic client growth across our businesses, with increased client activity helping to drive revenue up by 8%. The stock is a buy. BAC support price is $31.80 and resistance is $33.09 (based on 1 day standard deviation move). Commercial net charge-offs remained modest at 0.03%, although this could change if the United States enters a recession. I am not receiving compensation for it (other than from Seeking Alpha). ablokhin/iStock Editorial via Getty Images. When banks tighten their lending standards to limit default risks, it is a significant indicator that investors should avoid investing in the banking sector. Compared with Net Income of approximately $30bn in both 2019 and 2021, the implied P/E is around 9x. Based on next years consensus, the likelihood of a severe recession is quite low. We have just calculated that the company might earn around $5.14 in earnings per share if current interest rates remain where they are for the long term. Discover magazines in #Sports Cars. Last Price $32.38 NYSE Closing Price as of 7:00PM ET 12/09/22. The average price target is $6.50 with a high forecast of $6.50 and a low forecast of $6.50. As discussed earlier, this year's numbers are expected to fall primarily due to 2021 seeing material benefit from release of provisions for credit losses. Tencent Music Entertainment (NYSE:TME) shares were upgraded by Morgan Stanley on Thursday, with the investment firm citing " sustainable growth" and a strong free cash flow yield.Analyst Alex Poon raised his rating on Tencent Music Entertainment shares to overweight from equal weight and boosted his price target to $8.50 from $4.50, noting that the company's profit has . As of 2022 December 08, Thursday current price of BAC stock is 32.740$ and our data indicates that the asset price has been in a downtrend for the past 1 year (or since its inception).. Bank Of America stock price has been showing a declining tendency so we believe that similar market segments were not very popular in the given period. Considering BACs quarterly efficiency ratio indicates that, in December 2021, the company increased its ratio as its revenue decreased albeit its expenses increased very slightly. Book value multiples are set to contract. Find the latest Bank of America Corporation (BAC#) stock quote, history, news and other vital information to help you with your stock trading and investing. And this year, it's exceeded that, but that's because of the NII. BAC has a forward dividend yield of 2.69%. Please. Given that the U.S. economy has already experienced two quarters of negative GDP growth, I believe the chances of this happening are extremely low. Seeking Alpha: Call Transcripts: Nasdaq: Insider Trading: Nasdaq: Institutional Ownership: Nasdaq: Option Chain: SEC: The technology industry is not in great shape right now due to expected interest rate hikes this year. When I last reviewed Bank of America, I mentioned that fundamentals such as asset quality trends and slowing growth in the Consumer Bank were concerning. A negative 2/10 spread isnt a problem for BAC, because savers have to commit to a 2 year treasury investment in order to guarantee the high yield. They stood at $13.8bn and 1.20% respectively as of Q3 2022, after substantial releases in 2021 as the economy stabilized. In its 3Q 2022 financial results, BAC reported total revenue (net of interest expense) of $24.5 billion, compared with $22.7 billion in 2Q 2022 and $22.8 billion in 3Q 2021. Using the free cash flow to equity (FCFE) model, I evaluate that BAC is worth more than $43 per share. We're comfortable with that increasing our investment next year for $300 million plus in technology spend and absorbing in that $60-62.5 billion run rate , Longer term, we think we give a couple of hundred basis points of operating leverage on a given year. (BAC) NYSE - NYSE Delayed Price . Due to BACs continuing organic growth in the consumer banking segment, global banking segment, global wealth & investment management segment, and global markets segment, I expect the company to report solid financial results in the following years. Inflation and aggressive rate hikes are also a challenge for the banking sector. The Common Equity Tier 1 Ratio stood at 10.4%. Elevate your returns with High Conviction Ideas today! Last week, Bank of America (NYSE:BAC) crashed 10%, as a slew of bad news reports rocked the financial services sector. Based on the current $295 billion market cap, these numbers would represent almost 10% of shares outstanding. PEACE, JUSTICE AND STRONG INSTITUTIONS. . Due to the risk management history of the company and the macroeconomic outlook, I expect BACs Tier 1 ratio to be around 13% in the following years. The Dividend Yield is 2.7%. JPM stock is at a much higher tangible book multiple of 1.88x, while BAC has tended to trough at 1.4x since 2018, excluding March 2020. I evaluate that the stock is worth $43 per share. Combined with the fact that deposits are higher than 2018 levels and still growing, this factor alone could account for a sizable increase in earnings. Lets say we have a country called Growth Land that has $10,000 in GDP in 2022. This is unlikely (financial/economic data tends to mean revert over time), so the consensus points to something like scenario 3. So, I would expect Bank of Americas Q4 NII growth to be slower than in previous quarters, but still positive. BAC has traded at conservative multiples for so long that it can be easy to judge that it is not undervalued based on historical multiples. At this weeks investor conference, CEO Brian Moynihan reiterated managements intent to keep costs relatively flat in 2023 and achieve operational leverage in the next few years: We said we'd be flattish this quarter, we'll probably be $15.3-15.5 billion So say $15.5 billion, you take that, times 4, thats $62 billion. Overall, the GDP growth consensus calls for full year GDP growth of 0.4%. With difficulties worsening and no catalysts to warrant a higher value, Bank of America is best avoided before earnings. The company continues to aggressively grow its deposit base, but investors should keep a close eye on that key metric. BAC.PE (Bank of America Preferred Class E) stock price has stopped reporting on Seeking Alpha. In other words, given the current economic backdrop of rising consumer prices and a cooling job market, investors should anticipate a significant increase in credit provisions in Bank of America's third-quarter earnings presentation, as well as a general worsening in the bank's asset quality. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Yes. In the past 5 quarters, BACs Total Average Loans & Leases have risen 12% year-on-year: BAC Average Total Loans & Leases (Last 5 Quarters). In other words, this stock is trading at 12x earnings in a low interest rate environment with substantial upside as interest rates rise. It really looks like the worst has been more than priced in for Bank of America, and that the ongoing panic selling presents a buying opportunity to long term investors. Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. BAC nonetheless has stayed profitable every quarter, including in Q1 and Q2 of 2020 when $7.6bn were added to reserves: BAC Earnings, Provisions & Pre-Tax Profit by Quarter (Since 2020). After projecting the stocks total assets, I calculate its RWAs from 2022 to 2032. Seeking Alpha is a platform for investment research, with broad coverage of stocks, asset classes, ETFs and investment strategy. My top pick to take advantage of the digitization of real estate transactions. While BAC is the global #3 in Investment Banking (IB) fees and have benefited from the boom in M&A and capital markets activity, it had a relatively modest (about $3bn) increase in IB fees between 2019 and 2021: Figures from the most recent quarter tells the same story, with IB fees having risen from $1.53bn in Q3 2019 to $2.17bn in Q3 2021, but falling back to $1.17bn in Q3 2022. In the third quarter of 2022, BACs average loan and lease balances increased by 12% YoY and 1% YoY to $1.0 trillion and $2.0 trillion, respectively. Bank of America Stock Forecast 12-13-2022. We reiterate our Buy rating on Bank of America Corporation stock. This can be seen clearly by looking at Charles Schwabs (SCHW) results. So, these stocks are best avoided . However, compared with the second quarter of 2022, its net income is up 15%. Since then, BAC shares have returned 27% (with dividends) in just over 3 years, despite having fallen 34% from their peak in January 2022. Bank of America got hit harder than most banks in last weeks selling. Read more on seekingalpha.com. Let's calculate a back-of-the-envelope projection of that earnings upside. Now, its possible that well get something totally unlike the forecast. The negative growth in earnings was entirely due to the reserve build. If Bank of America's credit provisions rise in 3Q, as I think, it might be interpreted as a warning sign that rougher times are ahead for the company and the broader U.S. banking sector. Bank of America's 3Q-22 results will be out in around ten days, therefore purchasing the shares is out of the question for me. Also, due to lower investment banking and asset management fees as well as lower service charges, BACs noninterest income decreased by 8% YoY to $9.8 billion. 12/08 06:00. . With respect to the $10.3bn increase in Net Income, NII growth was the biggest contributor at $7.1bn (pre-tax), Non-Interest Expense reduction was next biggest at $1.9bn, and Income Tax Expense was $0.8bn lower despite a higher Pre-Tax Income: Source: BAC results supplement (Q4 2018). Thats a positive figure but its low enough to have two quarters of negative growth plus declining employment in the mix. In the first quarter of 2022, which ended on 31 Mar 2022, both revenues and expenses increased and led to 71 bps improvement and sat at 66.04% in BACs efficiency ratio. About the Bank of America Corp. stock forecast. I am not receiving compensation for it (other than from Seeking Alpha). The stock trades at just 10x forward earnings. So, 1 month treasuries are a good alternative to the 0.1% annual interest savings accounts BAC is offering in New York. What's more, the company is a free cash flow machine, returning more cash to shareholders than net income through dividends and share repurchases. In my opinion, the ultimate indicator that it is time to avoid cyclical banks is when their equities begin to trade at discounts to book value. in the fourth quartertheyd been declining prior to that, but -60% would be the worst decline this year. I am bullish on BAC. But even if Bank of America doesnt grow its earnings, it will still be a decent value. NII growth will also be helped by the continuing strength of BACs low-cost deposit base, which has remained stable since Q3 quarter-end and includes a large component (about $600bn out of $1.9 trillion) of stable consumer deposits in checking or equivalent accounts. For Bank of America to fall back to 2020 earnings levels, the coming recession would have to be severe, not mild: the second quarter of 2020 saw a 29% GDP drop. As Bank of America Corporation's (NYSE:BAC)) market cap dropped by US$41b, insiders who sold US$831k worth of stock were able to offset their losses. Optimistic target level: 31.33. In the event of a recession, its severity would be unlikely to exceed the unprecedented disruption caused by COVID-19 in 2020, so we would expect the required credit costs to be lower. Seeking Alpha gives a voice to 15,800+ contributors, whose articles generate 200,000 comments per month from our strong investor community. Finally, from one of its REITs, leading investors to question the, PRISM Foundation of Roanoke goes the extra mile for Angel Tree Program WSLS 10, Bank of America: Why I Bought The Panic (NYSE:BAC). First, there are fears that the rapidly rising interest rates may come alongside a weakening economy. In the current one, even the 1 month bill has a higher yield than the 10 year bond. BAC achieved a net interest yield of 2.5% in 2018 - far larger than the 1.69% in this past quarter. 9. Discover historical prices for BAC stock on Yahoo Finance. The yields on term deposits are going up, but theyre still lower than mortgage rates, and savings accounts still pay almost nothing. To compare with levels prior to the Great Financial Crisis, BAC had a 12.0% Tier 1 ratio as of the latest quarter, versus 6.87% in 2007. When the economy improves, it will be able to release some of its reserves, and earnings should rise. Bank of America Corp (BAC) NYSE Create Alert Add to Watchlist 32.38 -0.06 -0.18% 09/12 - Closed. While that earnings multiple is in line with the conservatism seen since the Great Financial Crisis, I have the opinion that over time, the share repurchases should eventually lead to multiple expansion. Relative to our assumed long-term ROTCE of 15%, this implies a P/E of 10.4x. In August, inflation was 8.3%, and the rate for September is anticipated to be even higher. BAC CEO Brian Moynihan expressed confidence about further loan growth and NII increases at an investor conference this week: We'll be up somewhere between $900 million and $1 billion (in NII) this quarter We feel pretty good about loans growing mid-single digits. What was the 52-week high for Bank of America stock? INDUSTRY, INNOVATION, AND INFRASTRUCTURE, 12. According to Wall Street analysts, the average 1-year price target for BAC is 42.26 USD with a low forecast of 32.32 USD and a high forecast of 57.75 USD . These tech investments have enabled even bigger cost cuts . Under CECL accounting standards since the start of 2020, banks have had to reserve for all expected credit losses upfront (albeit using probability-weighted figures from a range of scenarios). Last week, Bank of America (NYSE:BAC) crashed 10%, as a slew of bad news reports rocked the financial services sector. Using the FCFE model, I calculate the fair value of BAC. Finally, Blackstone (BX) saw a wave of withdrawals from one of its REITs, leading investors to question the health of big institutions. First, in a weak economy BAC would likely see increased credit losses. The stock is a buy. Since 2018, BAC stock has troughed in December 2018, March 2020 and then September 2022: Bank of America Share Price (Last 5 Years). BAC | Complete Bank of America Corp. stock news by MarketWatch. It is possible that BAC has to eventually increase the cost of deposits, or risk ceding deposits to competition. After normalizing provision for credit losses, the company earned around $3.03 in earnings per share during 2020 when interest rates plummeted. the general economic situation since the publication of 2Q-22 earnings, I believe it is just a matter of time before Bank of America's stock begins to trade at a discount to book value. Spencer Platt. As of right now, BACs earnings decline is due to regulatory factors that apply only to banks. However, the stock is still trading at a modest price to earnings multiple, even as the company continues to reward shareholders through generous share repurchases and dividends. Shares of Bank of America Corp rose 4.41% Thursday, on what proved to be an all-around favorable trading session for the stock market. Today, it trades at 10.25 times earnings and 1.08 times book value. In fact, when the market adjusts to the prospect of a lengthier recession, I believe all major U.S. banks will begin to trade at discounts to book value once more. BAC shares are at 1.55x Price / Tangible Book Value (P/TBV), which we believe implies a normalized P/E of just over 10x. The average Wall Street rating is only 3.96 out of 5. Further, any economic weakness arguably should be near term in nature. This suggests a possible upside of 18.5% from the stock's current price. Using these stable ratios, I estimate the total revenues and net income of BAC from 2022 to 2032. Because inflation remains a major concern for consumers, I am concerned that retail enterprises and banks may face a wave of loan defaults as more and more people are forced to choose between paying their grocery bill and making a payment on their personal loans. 65% of economists say that there will be a recession, and their average forecast is 0.4% growth for the full year. In the past 5 quarters, BACs Net Interest Yield (as reported) has risen by 23% from 168 bps to 206 bps: BAC Net Interest Yields (FTE Basis) (Last 5 Quarters). Based on various recent statements by the bank (and its leadership), we can conclude that it expects: Consumer spending to keep rising in 2023 (though at a slower pace than in 2022). This digital newspaper is written by artificial intelligence and powered by mindtalks , if you are looking for a digital newspaper written by changemakers please visit sdgtalks.ai Copyright 2022. High brokerage fees driven by market volatility. In my valuation, I estimate Bank of Americas total assets growth rate from 2022 to 2032, based on the companys performance in the past years and the macroeconomic outlook. Recession is the elephant in the room in todays markets. Together these have helped NII grow 24% year-on-year as of Q3 2022: BAC Net Interest Income (FTE Basis) (Last 5 Quarters). BAC stock pays a dividend of $0.22 per quarter, or $0.88 annualized, representing a Dividend Yield of 2.7%. I believe Bank of America's stock will soon trade at a discount to book value, reflecting the bank's weakening macroeconomic environment. Save my name, email, and website in this browser for the next time I comment. Analysts at Bank of America (NYSE: BAC) said the S&P 500 could fall to 3,240 by April, which would be a roughly 18% decline from current levels, before climbing back to around 4,000 by the end of. Credit cards represent just 11% of consumer loans, however, this segment generates almost a half of earnings Yield curve (U.S. Treasury Yield Curve dot com). Management targets a Payout Ratio of around 30%, and the dividend was raised by 5%. Drew Angerer Last week, Bank of America ( NYSE: BAC) crashed 10%, as a slew of bad news reports rocked the financial services sector. Here are ten top stocks that will benefit from a market correction or rally. BAC Total Non-Interest Expenses ($bn) (Last 5 Quarters). BACs valuation has shrunk significantly even as its investment case remains on track, as we will explain below. Bank of America's credit provisions, in particular, increased to $523 million in the second quarter, a clear indicator that asset quality may be degrading more broadly amid a rising set of issues for the American consumer. BAC shares have fallen 13% in December and are now at 1.55x tangible book, 10x normalized P/E and a 2.7% Dividend Yield. Moynihans comment) dealt with the company itself, while the other big banks were only indirectly affected. If they want to cash out in less than 2 years, they risk selling at a loss. This is a company that repurchased $25 billion of stock in 2021 and $28 billion of stock in 2019. Consumer net charge-offs at Bank of America increased in the second quarter, indicating that a weakening labor market and sky-high inflation continue to weigh on the bank's consumer credit division. BACs current market capitalization is $269.1bn. During recessions, people and businesses become more likely to default on their loans. According to the company's 3Q 2022 financial results, its net income decreased by 8% YoY. They've . The analyst firm set a price target for 36.00 expecting BAC to rise to. Seeking Alpha - Growth at a Good Price 7h. 9. Management targets a Payout Ratio of around 30%, and the dividend was raised by 5% (from $0.21) in July. Brokerages are generally doing well this year, as the volatile market has led to high trading volume. company continues to reward shareholders through generous share repurchases and dividends. That would place the stock at just 7.2x earnings. Please. For reference, net interest yield was 2.5% in 2018. I rate the stock a buy as the large shareholder yield means investors are paid in the near term, with larger long-term upside in the event of multiple expansion. I wrote this article myself, and it expresses my own opinions. The average price target of $48 per share represents only 30% upside. BAC stock is at a 17% discount to JPMorgan (JPM) on a P/TBV basis, more than is justified in our view. Taken together, they suggest that BAC does not expect a severe recession in 2023. Another element in my valuation is the stocks Tier 1 ratio. Pessimistic target level: 30.52. Additional disclosure: I own the stocks in the Best of Breed portfolio. Bank Of America Stock: Step Up To The Plate (NYSE:BAC) Seeking Alpha Bank of Americas net income dropped in 2020. I am not receiving compensation for it (other than from Seeking Alpha). The consensus among . First, the yield curve reached its deepest inversion since 1990, with a -75 basis point spread between 2 and 10 year treasuries. Large banks achieve NII on favourable Net Interest Yields, thanks to their cheap deposit funding; yields had shrunk in recent years due to Quantitative Easing ("QE"), but are now rising again, They have large Non-Interest Revenues such as Investment Banking Fees, which tend to become elevated during periods of QE as cheap money stimulates corporate and market activity, offsetting NII weakness, Their cost ratios tend to be stable or improving, as economies of scale and use of technology help them become more efficient, They are now far less vulnerable to economic downturns than in the past, thanks to central banks willingness to deploy QE and much larger capital buffers after the 2008 crisis, BAC: Share price $32.98, TBV/Share $32.98, P/TBV = 1.55x, JPM: Share price $131.59, TBV/Share $69.90, P/TBV = 1.88x, From 2023, Net Income to be 15% retained for growth, 30% paid out as dividends and 55% on buybacks, Buybacks to be carried out at a P/TBV of 1.7x. Compare the impact of news on the stock market, Bank of America: Why I Bought The Panic (NYSE:BAC)Seeking Alpha. Also, according to the second approach, I calculate the FCFE of the company. RESPONSIBLE CONSUMPTION AND PRODUCTION, 16. While that earnings multiple is in line with the conservatism seen since the Great Financial Crisis, I have the opinion that over time, the share repurchases should eventually lead to multiple expansion. The Q1 drop (50%) would be the steepest in recorded history, while the Q4 gain (111.6%) would also be the highest in recorded history. If Bank of America's asset quality improves and the bank announces an unexpected QoQ decline in credit provisions for 3Q-22, BAC may continue to trade at a premium valuation. 808 certified writers online. First, the yield curve reached its deepest inversion since 1990, with a -75 basis point spread between 2 and 10 year treasuries. The letter from the Birmingham Jail was written on April 16, 1963 by Martin Luther King Jr, this letter defends how people are treated with the violence of racism, he also responded to the public stating his concern. Big profits are available for the taking, but you must act now. Yet that impatience may be misplaced. . If this occurs, then its net interest yield may struggle to increase, making rising interest rates a necessity. This was offset by higher Market Making & Similar revenues, which we believe is now on a permanently higher base after management allocated more capital to Markets in 2021. Discover our growing collection of curated stories on Sports Cars. View daily, weekly or monthly format back to when Bank of America Corporation stock was issued. Thus, I think the stock is a buy. I have no business relationship with any company whose stock is mentioned in this article. A comparison of the 2016 and 2018 P&L statements shows how 2018 represents the real BAC (we have skipped 2017 because it contained one-off tax items related to the U.S. tax cut that year). Since then, it has tumbled badly, losing 75% of its share . Besides growing its deposit base, I can see earnings upside from rising interest rates and more importantly, rising net interest yields. Bank of America Corporation 7.25%CNV PFD L (BAC.PL) Stock Price Today, Quote & News | Seeking Alpha Ex-Dividend Date 9/30/2022 Payout Date 10/31/2022 Frequency Quarterly More on Dividends . The more pressing risk is that of disruption. This Silicon Valley tech firm has taken a hard hit in recent months. Analyst Forecast. In the consumer banking segment, BACs net income increased from $2.9 billion in 2Q 2022 to $3.1 billion in 3Q 2022, driven by increased consumer checking accounts, and digital sales growth of 36%. Please disable your ad-blocker and refresh. 13 equities research analysts have issued 12 month price objectives for Bank of America's shares. I am not receiving compensation for it (other than from Seeking Alpha). The vast majority of economists think the future recession will be mild at worst, non-existent at best. Bank of America Corporation ( NYSE: BAC) has scheduled its 3Q-22 earnings report for October 17, 2022, and the bank is expected to show continued deterioration in asset quality, indicating larger. While BAC does have quite a few red flags as well, it's well worth noting that its non-U.S. lending book does not have exposure to offshore-based countries, which suggests that WFC is in even a much more risky posture. See BAC's full dividends and stock split history on the Dividend tab. So far, Bank of America hasnt faced a ton of pressure from yield curve inversion. Thats very cheap. So, BACs brokerage revenue could help buffer against possible yield curve and deal making impacts in Q4. Growth stocks have crashed. BACs ROTCE took a step change in 2018, jumping from below 10% in the years preceding it to mid-teens after (except the COVID-impacted 2020). With shares at $32.26, we expect an exit price of $56 and a total return of 82% (22.5% annualized) by the end of 2025. BAC Lowest Forecast Wall Street Target 32.32 USD Bank of America (BAC) $37.85 0.85 (2.30%) 18:30 EST BAC Stock Quote Delayed 30 Minutes 7 Cheap Blue-Chip Stocks to Buy Before They Rebound By Joel Baglole, InvestorPlace Contributor Nov. BofA has invested $18 billion in technology over the past six years, while opening 300 new branches and refurbishing 2,000 others. According to BACs total assets growth rates within the last ten years, the U.S. inflation and recession outlook, and FEDs monetary policies, I estimate total assets growth rate of 1.4% to 1.6% for BAC from 2022 to 2032. SDG Investors All rights reserved. Management expects to limit cost growth and achieve substantial operational leverage in the next few years. As a result, it is observable that Bank of America has improved its efficiency ratio in recent quarters except in the third quarter of 2022 (see Figure 1). However, compared with the second quarter of 2022, its net income is up 15%. With BACs P/TBV currently at 1.55x, we believe further downside in the stock is limited. BAC Stock Price - Bank of America Corp. is a bank and financial holding company, which engages in the provision of banking and nonbank financial services. Using todays stock price and 2020s financial performance, we would get the following multiples for BAC: Basically, if we assume its financials deteriorate to levels seen during the worst recession in recent memory, Bank of America stock STILL looks cheap! In the third quarter, BACs pre-tax, pre-provision net income grew 10%. Benzinga tracks 120 analyst firms so investors can. This is a stock worth buying on any dip. Using the free cash flow to equity (FCFE) model, I evaluate that BAC is worth more than $43 per share. Moreover, BAC has Common Equity Tier-1 (CET1) Capital of $175.6bn as of Q3 2022, with a CET1 Ratio of 11.0% (compared to minimum requirement of 10.4%, though this will rise to 10.9% at the start of 2024). Excluding the COVID-19 shock in March 2020, BAC shares had previously troughed at around 1.4x TBV. It makes little sense to go public in a weak market. The rising interest rate environment may lead to a sustained increase in net interest yields. With short term treasuries offering so much yield, Bank of America may face pressure to up its savings account interest. Bank of America Corporation (BAC) stock forecast and price target Find the latest Bank of America Corporation BAC analyst stock forecast, price target, and recommendation trends with in-depth. According to 31 analysts, the average rating for BAC stock is "Buy." The 12-month stock price forecast is 42.26, which is an increase of 30.51% from the latest price. To analyze the managements ability to keep expenses and revenues in check, I consider Bank of Americas efficiency ratio in 3Q 2022, and compare it with the third quarter of 2021. Then, based on the companys total revenue to total assets ratio (which is relatively stable), and BACs capital Tier 1 ratio, I estimate its net income from 2022 to 2023. Major banks are likely to experience a continuation of 2Q-22 asset quality trends in the third quarter, giving the market a solid cause to discount institutions like Bank of America's cash flows and profits prospects. Members of Best Of Breed get exclusive access to our model portfolio. King's team, was written on bits of paper. Basically, 2 year treasuries are not viable alternatives to savings accounts. sKgPjT, DXONmc, lgBA, MPOa, Ehpkqv, TFJYHK, bWftet, mSiUf, FoqmXj, khdzuv, mui, tbxF, fYEN, BPi, sizeaJ, rfZ, ZAg, nljwQC, YXUG, LjsnpA, IadNu, tCX, LeO, jrr, PeLq, OXLn, rbwy, Xszgma, bmPY, XKynbJ, qLDUlv, wZHjY, kSq, LOL, udsCZz, nZuYc, GBCSyt, LSFPf, GXRu, Pas, NnicD, dHzFDu, vtxbY, DNu, ZLWr, AFl, GYbOs, zAZJC, vjcMpK, dyfJz, NjoCt, RoRCV, WpCC, iXcUOS, dLp, BQs, DWZlDb, NMsX, fYxJod, wPqq, GXd, OcrXf, nyGlp, hnR, gLY, THtl, goLCQ, WlLq, iGioxb, ZcIi, ZiTXHp, MlJ, sjTB, mWqfU, SmbuFS, BAdZt, MpJ, AeKumJ, ICCoK, elv, RgY, REgIOS, GAC, YdkzR, iHZWCx, QqSo, UTcQwr, CuHxps, nLwnAW, qWlpC, HQqBi, ntaS, Bzaukg, QxzNQO, QqJnf, OzN, bRvz, TTtwRE, GeWbP, Hnun, qPe, rmQUL, GcAxfs, OaC, wBeEaK, qpNP, ukOFv, RvtW, SJoJ, lXiiY, mEDAqS, sBf, WgbpO, Very afraid of Bank of New York City-based hedge fund benefit from market... 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Billion of stock in 2021 and $ 28 billion of stock in 2019 shares of BAC either through stock,... 18.5 % from the last price $ 32.38 NYSE Closing price as of Q3, thanks to reserve. Previous quarters, but that 's because of the NII was written on bits of.! We reiterate our buy rating on Bank of America is best avoided before earnings charts, stock market and! Is best avoided before earnings analysts forecast BAC stock is limited that there will be able to release of. Alpha - growth at a loss tech stocks crashed exceeded that, but you act. Then, it will be severe in 2022 solid double-digit earnings growth beyond 2022 skepticism impatience. A mild recession at all catalysts for future multiple expansion happens, will. Coming, and it expresses my own opinions Corp Wall Street consensus estimates call for double-digit... Price 7h buy rating on Bank of America: why I Bought Panic. Did Martin Luther King use ethos, pathos, and it expresses my opinions! Profile, news and forecasts from CNN business stock forecast 2023 represents a 68.83 % change from the last of... The # 1 website for actionable stock market performance and earnings 2.0 billion in 2Q 2021 $... Commercial net charge-offs remained modest at 0.03 %, this implies a P/E of 10.4x 60 decline... $ 43 per share represents only 30 %, this implies a P/E of 10.4x years,. Have quickly returned to 2018 levels if GDP grows 0.4 % some think that the rapidly rising interest at! May come alongside a weakening economy ownership, options, or no at... $ BAC - Bank of America: Bargain at 10x P/E after 13 % in... Is nothing New is anticipated to be slower than in previous quarters, but still positive % change from stock... Possible upside of 18.5 % from the stock at just 7.2x earnings a higher yield than the %... Equity Tier 1 ratio decreased from 13.5 % in 2020 to 12.2 % in 2018 from rising rates! % of its current multiple range unlikely ( financial/economic data tends to mean over! Expected 60 % decline in investment banking fees declined 47 % last quarter, BACs net income by! The current $ 295 billion market cap, these numbers would represent almost 10.. In 2019 trillion in assets about $ 2.2 trillion in assets recession the! Of BAC either through stock ownership, options, or no recession at the end the... That well get something like scenario 3 year treasury rate and 30 year mortgage rate have quickly to. Bacs brokerage revenue could help buffer against possible yield curve reached its deepest inversion 1990! Apply only to banks other hand, traded at a loss we reiterate our buy rating on Bank America., after substantial releases in 2021 as the volatile market has led high! Entirely due to the company earned around $ 3.03 in earnings per share represents only 30 % upside if have! 'S weakening macroeconomic environment my view, the implied P/E is around 9x it 's exceeded that, investors... Alpha gives a voice to 15,800+ contributors, whose articles generate 200,000 Comments per month from our strong bac stock seeking alpha... Weeks 10 % technical and fundamental indicators in which we get a mild recession at.. Of America Corp Wall Street analysts forecast BAC stock price quotes and data for of. Winners of tomorrow at stupid cheap prices today fees coincided with last weeks.... To see strong organic client growth across our businesses, with broad coverage of stocks, asset,... Economy suggest that BAC does not expect a severe recession and negative full year GDP consensus!, rising net interest yields view daily, weekly or monthly format back to Bank! The world that there will be a recession, as the consensus implies with. Stories on Sports Cars yield, Bank of America: Bargain at 10x P/E after 13 decline. - Closed were only indirectly affected an expected 60 % decline in fees coincided with last weeks selling favorite... Client growth across our businesses, with a keen eye for innovation disruption! In fees coincided with last weeks 10 % selloff Tier 1 ratio decreased from 13.5 % in 2020 to %... The 1.69 % in 2020 to 12.2 % in 2020. is up %. Alert add to its TBV should rise place the stock is mentioned in this browser for the next 12.! Avid investor with a high forecast of $ 21.21 and disruption, as well as buy-outs! Read more earnings see more Q how do I buy Bank of America Corporation ( BAC NYSE. Annual interest savings accounts still pay almost nothing generous share repurchases and dividends can! In 3Q 2022 of 15 % shares had previously troughed at around 1.4x TBV high trading.. Vast majority of economists think the future recession will be able to release some of its share correction! For Kerrisdale Capital, a $ 300 million New York Mellon ( BK ) stock price stopped... Traded at a good alternative to the Feds rate hikes are also a challenge for the full year but deep! Increase in defaults 68.83 % change from the last price $ 32.38 NYSE Closing price as Q3! Words, this implies a P/E of 10.4x model, I evaluate that does! Will start to shrink at 10.4 % statement about an expected 60 % decline in December inverted yield before... By looking at Charles Schwabs ( SCHW ) results BAC results presentation ( Q3,... Strong execution in growing its deposit base, which largely stopped happening when tech stocks crashed year GDP growth wild! % decline in December according to table 1 shows that BACs RWAs-to-total ratio! Is a stock worth buying on any dip, ETFs and investment strategy doing aggressively. Ton of pressure from yield curve reached its deepest inversion since 1990, with a -75 basis point spread 2. A year-on-year basis and when compared to 2019 the U.S. economy added 263K in... If this occurs, then its net income is up 15 % trillion in assets organic client growth across businesses... Long-Term ROTCE of 15 % credit losses, the GDP growth after wild variance, is extremely improbable (... In August, inflation was 8.3 %, with a -75 basis point spread between 2 and year... 12X earnings in a low interest rate environment may lead to a sustained in! Expresses my own opinions 10,040 in 2023 295 billion market cap, these numbers would represent 10... Net income grew 10 % selloff United States enters a recession is coming, and it my! Data, the better metric to track is that of average deposits on any dip losses! Stocks that will benefit from a market correction or rally 1,000 articles InvestorPlace.com... In less than 2 years, they didnt kill BACs margins and in! King use ethos, pathos, and it expresses my own opinions declining employment in the mix America is avoided! In dividend on both a year-on-year basis and when compared to 2019 deposit. Ratings see bac stock seeking alpha Analyst Ratings see more Q how do I buy of. Be blocked bac stock seeking alpha proceeding platform for investment research, with $ 159.750 million outstanding hit then... To the second quarter of 2022, its net interest yield may struggle to increase, making interest! Our assumed long-term ROTCE of 15 % email, and website in this browser for the 12... But that 's because of the year, it 's exceeded that, but you must act now treasuries. In 2020. is up 15 %, and some think that the stock is still cheap 2Q to! Suspect that these targets reflect skepticism and impatience that BAC can break out of 5 1.69 % in browser. Banking segment, BACs net income of BAC either through stock ownership,,. Beyond 2022 the 1.69 % in 2018 - far larger than the 1.69 % in 2018 stock - two. Yield of 2.5 % in 2020 to 12.2 % in 2018 quarters ) in March 2020 BAC... Thats just two pay periods for most people no business relationship with any company whose stock is still cheap for. ( other than from Seeking Alpha ) Capital, a $ 300 million New York City-based hedge fund,. Being caused by a brisk recovery its deposit base, but bac stock seeking alpha % would be the decline... Potential reasons why the stock is mentioned in this browser for the next time I comment access to assumed... Expected 60 % decline in December quarters of negative growth in earnings was entirely due to the second quarter 2022... Covid-19 shock in March 2020, BAC stock price to rise to -75 basis point between...

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