Bank of America (BAC) Buy, Sell or Hold

Bank of America (BAC)

53.60

-0.14 (0.25%)

as of Oct 2, 2026, 5:57:12 pm Market Open.

709 watching

BUY

Still constructive on the name. A top pick at $12 a few years ago. They have done a great job at tightening risk controls and cost reductions. Last quarter they beat estimates. Credit quality still fine. They model EPS growth of 11% 2018-2020 and trading at 9 times 2020. Good value here.

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TOP PICK

Synthetic long Buy a January 2021 $30 call option to January 2021 (costing $3.60 today). Pay for this by selling a $30 put, so you're obligated to buy BAC at $30. If BAC goes above $30, then the call option is worth something and the put will expire. If below $30, the call will expire and the put will be exercised. He can take 50 cents into his pocket immediately. He has no cash outlay. He'd get dollar-for-dollar performance on the stock between now and Jan. 2021.

PAST TOP PICK

(A Top Pick Feb 12/18, Down 6%) He's bullish U.S. banks. BAC is doing a great job of re-structuring the company by bringing down costs and growing its core businesses. Also his Top Pick today.

TOP PICK

22% payout ratio vs. 40% among Canadian banks. BAC's payout ratio and dividend are rising. They're buying back shares. It's trading close to book value, $25.13. BAC faces no legal issues other headwinds. They have great growth prospects in Merill Lynch. They're cutting costs and using technology more aggressively to grow. Remember: BAC is Buffet's largest position. (Analysts’ price target is $33.09)

BUY

US banks are still correcting, not bouncing back as much as the market. BAC has announced a strong stock buyback program. You need to buy JPM as well as BAC and Citigroup. He's looking to buy this. The street is puzzled with this sector isn't doing better. There's a lot of pent-up upside in these names. Interest rates could be a catalyst.

BUY

Lots of upside in BAC and he expects this to return to $35. He likes it now.

BUY

BAC vs. Wells Fargo Both are well-run, with BAC trading at a slightly lower multiple, so he favours BAC. Also, Wells has a scandal to still deal with it and management issues, which is why he's stayed away from it. A rising yield curve boosts all the US banks, so that's's now a headwind as rate increases slow down. Both benefit from a strong US economy.

HOLD

They move with the market, and he thinks the Dow is toppy now. No reason to sell North American banks. The only reason to sell it now is to buy it back cheaper later.

BUY

JPM is the best of the pacl, while BAC is more a value play. He owns JP Morgan instead, run by a super CEO. Any portfolio should own one US bank. You can't go wrong with BAC. It's undervalued now.

COMMENT

He owns three US banks and one Canadian. He owns WFC-N instead of BAC-N, when it the market became worried about management changes there that created an oversold situation. BAC-N is a fine one as well.

TOP PICK

12% EPS growth. 9x earnings. 1x price-to-book. Return on tangible common equity is 16%. He feels there's more to follow as they gain market share. (Analysts’ price target is $32.63)

DON'T BUY

Bank of America vs Citigroup. There's some good opportunities but maybe not something you want to invest in right now. Deposits competition is heating up. Net interest margin moving the wrong way. Deposits costs are higher. Credit isn't terrible right now. Not that the banks are a terrible spot, you're probably going to do fine. Dividends are totally safe. But is this really going to get you a great return right now? Better places to be, and probably better countries.

SELL ON STRENGTH

For a trade for a couple of months you would be okay. We need this end of cycle to happen before the recession. He is looking to sell into strength.

DON'T BUY

BNS-T vs. BAC-N. He owns the Canadian banks. Most of the US banks have been bankrupt in his career. Canadian banks are better regulated. You might make more money in the US within a couple of years but not after 5 years.

BUY

Absolutely likes US banks. Thinks you can own both Canadian and US banks. JP Morgan has held up better than Goldman, though his clients own both. He'd absolutely buy BAC or JP Morgan, because recession fears are overblown, interest rates will go up slowly in US and this will benefit the banks. Valuations are quite attractive, balance sheets are better.

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Bank of America (BAC)