Bank of America Corporation (BAC) Buy or Sell Stock Guide

Last updated: Jan 09, '18

The analysis below may be helpful to you if you have any of the following questions about BAC stock:

  • Is BAC a buy or a sell?
  • Should I sell or hold BAC stock today?
  • Is BAC a good buy / a good investment?
  • What are BAC analyst opinions, recommendations, ratings?

Here are BAC stock buy reasons/signals:

1. Bank of America is poised to succeed as a provider of retail banking and wealth management services on a nationwide scale.

2. CEO Brian Moynihan has slowly repaired years of damage while mostly staying out of the headlines.

3. Many of Bank of America's past problems were a result of poor capital-allocation decisions. The company's size (it is now too big to make material acquisitions) along with increased regulatory scrutiny reduces this risk going forward.

4. BAC profitability is improving. The YoY profit margin change was 1.97pp.

5. BAC forward dividend yield is 1.63%, higher than the industry (1.31%) and sector (1.27%) forward dividend yields.

6. BAC Price/Book ratio is 1.23, and it’s low compared to its industry peers’ P/B ratios.

7. BAC PEG ratio (P/E adjusted for growth) is 1.25, and it’s low compared to its industry peers’ PEG ratios.

8. BAC average analyst rating is Buy.

Here are BAC stock sell reasons/signals:

1. A financial institution of this size and complexity is inherently unmanageable--it's even possible that regulators might decide to break up the company.

2. Bank of America has been cutting expenses for years, and the low-hanging fruit in this realm has been picked.

3. Digital competitors are nipping at the heels of traditional branched banks.

4. BAC stock price ($30.13) is close to the 52-week high ($30.25). Perhaps now is a good time to sell?

5. BAC quarterly revenue growth was 1.10%, lower than the industry and sector average revenue growth (9.24% and 6.91%, respectively).

6. BAC average analyst price target ($28.27) is below its current price ($30.13).

What are your thoughts on BAC?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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