NYSE:BAC

Bank of America (BAC)

50.56
-0.52 (1.02%)
as of Oct 23, 2026, 8:00:00 pm Market Closed.
708 watching
0
TOP PICK
Rising interest rates have caused banks to sell off. Longer term, higher rates will be positive for financials. You'll see increased trading and wealth management opportunities. Attractively priced. Yield is 2.18%. (Analysts’ price target is $49.83)
BUY
They performed with trading revenues in their recent report. Banks will have to build reserves for potential credit losses, though.
BUY
The only reason to own the banks if if you believe the yield curve will steepen, and he does. The banks have put up good earnings. No surprise that banking volumes were down in the last quarter. He's staying with this stock which reported a great quarter relative to expectations. BAC capitalized on the trading environment. If their loan growth was negative he would have sold it, but they reported very well.
COMMENT
Would recommend stock as interest rates increase. Currently trading a good price to buy (geopolitical fear). As economy improves, will be good for business. Good dividend that should increase along with stock buy backs. Good stock to own.
HOLD
Bank stocks have a ways to run. Money is meant to be spent, and if you need the money, you need the money. But don't sell just because it's peaked. All big US banks will see a resurgence in business with interest rate increases.
PAST TOP PICK
(A Top Pick Mar 30/20, Up 100%) Model price of $42.82. His goal was for it to reach its book value, and it has. Sell at $45-46.
BUY
Great company, well run, not expensive at 11x earnings, 1.2x book, yield around 2%. Net interest margins are stabilizing. Volatility helps on the trading side, though IPOs are down. Asset management and credit card business will continue to grow. Massively overcapitalized. Payout ratio around 25%.
PAST TOP PICK
(A Top Pick Mar 19/21, Up 8%) Still likes the banks, though a rough go the last little while based on Fed speculation. Much lower expectation of a 50 bps hike, more like 25 bps. Higher interest rates are good for banks, and BAC is most sensitive to this. Worry that aggressive hikes will snuff out the economy and force a recession. He doesn't think this will happen. Good time to buy.
BUY ON WEAKNESS
He bought more recently. He focuses on quality and BAC had 28% revenue growth and net interest margin growth. It's not about the yield curve, but about commercial loan growth. Financials have been oversold recently, so this was a buying opportunity. He's nibbling at BAC.
WEAK BUY
Buffett has a huge position. US banks are a bet on the US economy, and it's strong. Interest rates won't go up as much as people think. He owns JPM and Canadian banks. Stocks are volatile, especially with the Russia situation.
BUY
A good bank and good play on the US economy, but she prefers JPM though JPM shares have lagged BAC, but JPM will catch up. You want to be exposed to US banks because interest rates are rising. JPM has been investing more in their business, and the street didn't like that, but it makes strategic sense. All banks are diversified in capital markets activity, lending and wealth management.
BUY
It's positioned well, because it's the most sensitive to higher interest rates among its US peers. As the yield curve steepens, the banks will make more money (the borrow short and lend long).
HOLD
For all the banks, rate increases are priced in. Loan losses will be extremely low, and loan growth will be pretty good. Wind at their backs. Valuations are pretty cheap. Don't write any covered calls, as you'll get called out of a good company that still has price appreciation.
BUY
It's a huge asset gatherer and enjoys customer loyalty, due to excellent digital interface. If the Fed hikes 4x this year, BAC will generate $6.5 billion in new revenue. 2022 could be BAC's year.
BUY
Positive on banking stocks due to rising interest rates. Believes company is a good buy.
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