Bank of America (BAC) Buy, Sell or Hold

Bank of America (BAC)

50.56

-0.52 (1.02%)

as of Oct 23, 2026, 8:00:00 pm Market Closed.

708 watching

BUY

He likes the US financials. This company trading at 9 times next year earnings. Close to one time book value. He thinks it is cheap. Loser regulatory environment favors this company. One of the largest holdings of Warren Buffet at the moment.

COMMENT

He thinks that a lot of the easy money has been made. Although interest rates are going up, what they are paying on the deposits is not much less then what they are loaning the money out. The historical benefits of net interest margin are not being realized to the fullest at this time. You do need to have financials in your portfolio. He would not be going into 2019 overweight financials. Bank of America is a great name, its conservative, and well diversified but he just don't think we are in an environment where you are going to want to be overweight in the banks.

PAST TOP PICK

(A Top Pick Jun 01/18, Down 3%) He still likes this one as it trades less than 10 times earnings and has a good dividend. Their fair value is near $40. Yield 2%

DON'T BUY

The US banks are one of the better parts of the market now, but there's also concern about Goldman Sachs' leverage sheet which casts a shadow over this entire space. He won't make any big moves here. He prefers JP Morgan, then BAC second. Sit tight and wait until the downward trend reverses. This could fall further to $26.

COMMENT

For US financials, the bias is down for him. If you can get it around $23, that’s his entry point. Don’t chase it. Trend of lower highs is negative from a technical view.

BUY

He likes the sector and this stock. Good valuation and decent long-term growth. Caveat: In the US, there's a growing emphasis on debt. Like 2007-8, if we were to see a debt issue emerge again, the banks would take it on the chin. Governance of US banks is good now. He's looking at this. It's one of the sounder stocks in this sector.

TOP PICK

Trading at 10x earning and at book value with a 6% increase in interest income. Even during flat interest rates, banks still make money. With each 1% interest rate rise, the banks will make $2.8 billion or 30-cents per share. The U.S. banks will bounce back. (Analysts’ price target is $34.39)

PAST TOP PICK

(A Top Pick Dec 04/17, Down 3%) Sold his shares to deploy cash into credit card companies. A re-allocation. But he prefers American banks over Canadian (stronger economy there, more stable, worries of loan losses in Canada).

BUY

Buy a long call option in January? Yes, go ahead. He just bought the January 27 option.

BUY

BAC vs. Canadian banks He likes the large-cap US names. With BAC you get a domestic US bank that pays a 2.10% dividend that will grow; and they will do share buybacks over time. Caveat: don't overweight banks. Vs. Canadian banks, the American economy is stronger than ours and U.S. banks enjoys a lighter regulatory environment, so he prefers U.S. banks.

TOP PICK

Has long owned this. It's corrected and he bought because the US banks will do well as America normalizes its yield curve. Pays a 2.2% yield. Regulations are still coming off that will benefit all banks. has the potential to increase dividends and earnings. He's added to his position recently. His favourite U.S. bank. (Analysts’ price target is $34.41)

PAST TOP PICK

(A Top Pick Dec 05/17, Down 2%) The problem with US banks is they don't pay dividends. So, in a weak market, how would investors view these stocks? Vs. Canadian banks, the American ones are cheaper on a P/B basis. But American banks know how to find trouble like 10 years ago.

TOP PICK

The market is preparing for a major recession in the US next year – which he completely disagrees with. His model price is $30. They have had two dividend increases in the last two years. Yield 2.2%. (Analysts’ price target is $34.41)

BUY

BAC vs. PRUDENTIAL If both benefit from wider rates, the spreads will widen for U.S. banks, which have been
pulling back. BAC has A 10% market share in the U.S. which is as big as the entire Canadian banking system. BAC has lot of exposure to the plain mortgage side where spreads should expand. Be patient and you'll see earnings and dividends. U.S. lifecos should benefit, too, but so will Canadian ones like MFC-T (which is a good entry point now). He prefers American banks over their lifecos.

BUY

It's come down a lot after a big run. It should advance again. Their Q3 report was decent, a beat. They're on track to meet their full-year guidance. It trades at 9.4x earnings and is well-capitalized. Little wrong here, but the banking sector is nervous because the Democrats could win and water down deregulation.

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Bank of America (BAC)