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
PAST TOP PICK
(A Top Pick Aug 15/19, Down 6%) The US banks will face tough quarters with higher loan loss provisions. But BAC is well diversified. The 3.5% dividend will be safe and will still buyback shares. It's cheap at these levels, according to book value for instance. The CEO is doing the right things in cutting costs by moving a lot more of their business onto the cloud. Headwinds are already baked into the share price.
BUY

A lot of negative sentiment has been out there regarding banks. BAC is a strong business, he favours JPM. They are both well diversified and have good valuations. The US banks were cleansed of the their toxic assets back in 2008-09. He would buy both.

BUY
He has recommended it for a long time. A great franchise, with a good yield, trades at 10 times earnings and only 0.8 times book value. A very cheap buy here. They are top ranked in investment banking and wealth management. A very strong franchise and conservative capital ratios. You can buy it here. He thinks it should trade at 1.5 times book. Yield 3.2%
PAST TOP PICK
(A Top Pick May 21/19, Down 19%) It is trading below book value. It is not a banking crisis. A lot of business comes from other areas. They stopped buybacks. They have room to increase dividends when things return to normal.
TOP PICK
They came out as a too big to fail bank. Their reserves are going up thanks to QE. They took advantage of free money, while tightening lending. Yield 3.06% (Analysts’ price target is $26.50)
TOP PICK
It is probably the highest quality bank in the US. Here it is EBV -3, 'at the blue'. This is a great opportunity. Insiders every day they are literally getting rid of regulations in terms of capital hits etc. Every day they strike out punitive regulations so when this is all said and done, these banks are going to be really good value. (Analysts’ price target is $32.92)
PAST TOP PICK
(A Top Pick May 21/19, Down 27%) Could take a position with fresh cash now. Trading well below book value. Lots of capital. In very good shape, and will continue to grow book value. Payout ratio in 25% range. Room to grow the dividend.
BUY

He still likes investing in US financials. A lot of the banks have emerged from the 2008 crisis with much improved balance sheets and efficiencies. BAC-N has continued to grow deposits. They have also invested in technology to add peer-to-peer payments. They have made their own AI for customers and investors.

COMMENT

BAC vs C? He bought BAC-N at $6 and expects it to go towards $40. He could see people buying it on momentum. He does not know C-N as well. He would not race in to buy either one at these levels. It was a sector way out of favour back in 2008, when he bought in.

BUY
Trades at 1.2x book. Great story at these levels. Can increase dividend or buy back shares. Nothing to worry about regulatory-wise, so they can grow their business nicely. (Analysts’ price target is $37.00)
BUY

BAC vs. WFC Trading at same valuation. WFC yield is a bit higher, but has more scandals which continue to hurt their brand. Missed earnings, and missed 8 of last 12 quarters. BAC is more diversified in capital markets. BAC has beaten 12 of last 12 quarters. BAC has outperformed WFC since 2011.

COMMENT

BAC vs. JPM Driving US banks is a strong economy and flat yield curve. Unlike last year, bank movement now will be on a valuation basis. JPM trades at a 50% premium to book value, and BAC at book value, but Citibank (which he owns) trades at 70% book value and is narrowing that gap. Citi is his choice.

BUY

Have interest rates bottomed out? JPM's earnings were spectacular and so he thinks there is no reason why this one can't do as well. He prefers JPM-N from an execution point of view.

BUY ON WEAKNESS
$35 seems to be resistance Has a pretty good breakout, so the outlook is good. It's overbought. Buy around $32.50.
BUY
BAC is a little rich now, but is growing well, especially in digital banking which is very profitable. They're returning lots of capital through dividend rises. He expects the yield curve to steepen; we're pushing the envelope in fiscal stimulus.
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