Bank of America (BAC) Buy, Sell or Hold

Bank of America (BAC)

53.65

-0.09 (0.16%)

as of Oct 2, 2026, 4:58:33 pm Market Open.

709 watching

BUY

JPM vs. BAC Both are first-class banks. He owns JPM which trades at a much higher valuation than BAC. Both are tops in their business lines. For the next 5-10 years they'll be in a sweet spot of reducing costs with few regulatory issues to deal with. They'll use tech to drive their business, an advantage for larger banks who can afford that. They will do some small acquisitions. They should be trading at higher multiples. Cash flow allows them to raise dividends and buyback shares. Their payout ratios are much lower than those of Canadian banks.

BUY

He likes Bank of America along with Citi Group. These two are the banks he would favour. The fair market value is miles above the price it's trading at, but they are still suffering from the 2008 crisis. The best thing would be for them to pay a dividend. (Analysts’ price target is $36.29)

COMMENT

2020 outlook? He bought another US bank and a US bank ETF a few months ago during a breakout. BAC and its peers are a little overbought and could retrace. Breakout at $32-33 will act as major support; the banks have a few good months, but can't forecast the entire year.

BUY

He likes BoA over CitiGroup. They’re one of the leading mortgage providers and this segment will benefit them. They’ve also done a great job cleaning the house. (Analysts’ price target is $35.00)

HOLD

A major money center bank in the US. He bought in early in the cycle and sold out in March when the Fed Reserve went to a loosening strategy. He saw that as a threat due to the risk to the interest rate curve. Now that the curve is steepening again, he sees this as a good hold now.

BUY

He believes the target price is achievable but not in 12 months. Reconstruction over recent years is starting to pay off. He would consider this if you wanted a US bank but he prefers Canadian banks. (Analysts’ price target is $37.00)

DON'T BUY

Take profits? He's short the US banks and owns them. He expects interest rates to head down. Loan growth is anemic. What's great here? Either a stronger economy or interest rate hikes would excite him. BAC is more levered than its peers. Its valuation is full.

PAST TOP PICK

(A Top Pick Nov 13/18, Up 23%) At the start of 2019, the Fed seemed accommodating. But now they're on hold, and this has been a real booster for the banks because they make money off the spread. He sold on the belief that he didn't want to be overly levered to a shallower yield curve.

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WEAK BUY

BAC vs. WFC A lot of banks have started to perform. Doesn't own either of these. Both have same price to book. WFC has a slightly higher dividend yield of 3.8%, whereas BAC is 2.2%. The fraudulent accounts scandal is still hurting the WFC brand. WFC revenue relies heavily on the yield curve. He prefers BAC, as they're a little more diversified with their capital markets division.

PAST TOP PICK

(A Top Pick Nov 06/18, Up 20%) He is still bullish on financials. When the yield curve normalizes all the banks will make a lot of money. They are doing well going into the headwinds currently. He likes the technical price breakout now too.

PAST TOP PICK

(A Top Pick Feb 13/19, Up 16%) Trades at 1.2x book vs. 1.5 by Canadian banks. Investors were fearing the inverted yield curve which scared them off US banks stock. BAC continues to decrease its costs and buyback shares. A great story.

COMMENT

He would buy Bank of America. The stock is still very cheap, price to book value. It has a decent growth rate. This is the one to be buying in this kind of climate.

DON'T BUY

It's cheap vs. upside potential, though pricey vs. its past. He hopes it returns to $36.50, but negative interest rates aren't good.

BUY

A terrific business. US banks are well-capitalized. BAC is doing well introducing their business into new markets, though don't expect them to do big acquisitions. BAC is using tech aggressively to cut costs and in turn reinvest those savings. Low and declining interest rates are a neutral to modest negative factor.

PAST TOP PICK

(A Top Pick Nov 02/18, Up 9%) BAC is holding on as banks around the world are struggling. The most capitalized bank in America. It's been in a trading range the past year.

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Bank of America (BAC)