Bank of America (BAC)

A recent pull back makes this previous pick even better. He has a model price of $32.60. He was disappointed the dividend was not increased. Rising interest rates will aid this stock. Yield 1.6%. (Analysts’ price target is $34.80 )

It's done well since fall 2016 when he bought it. It'll continue to do well. There's a misconception--the U.S. and Canadian banks don't need a positive yield curve to make money, though it helps. All they need are interest rates Iin general to go up. So, he sees a lot of runway for the banks, which won't rely on the yield curve to steepen.

He would prefer KRE-N but would have no issue with BAC-N as long as the US economy is in decent shape.

He has liked it for quite a long time. A good, nice recovery type of company. It is running into a problem with the inverted yield curve. It is safe, though, and a good company

Likes it. Banks enjoy U.S. tax reform; also, U.S. more companies will need loans as the economy improves. De-regulation is another tailwind. BAC will return equity to shareholders.

Bank of America (BAC-N) vs Wells Fargo (WFC-N). He is staying away from Wells Fargo due to the cease and desist order. Higher rates helps both of them. He leans slightly towards BAC-N.

De-regulation and rising interest rates will benefit all U.S. banks. Likes this sector though are better ones elsewhere. BAC is well-capitalized and positioned.

Reports on April 16. Trading revenues are expected across the whole sector to rise. He's held on during BAC's recent 10% correction and still likes it. Generally, in the U.S. banking space, he expects some M&A.

(A Top Pick May 5/17, Up 28%) Rising rates will push this higher. US banks were held back, to some degree, by overregulation. Buy a new position of this now or add to an existing position.

U.S. banks will be a great place to be. They're well-capitalized. The sins of 2008 still fresh in their mind, so they're afraid to err like that again. Payout ratios will be close to 100%. Yield curve is now flat, which is hurting BAC a little,
but should resolve itself. Good dividend and earnings growth. Good safety.

(A Top Pick Apr 21/17, Up 32.89%) They were big beneficiaries of anticipated Trump tax cuts. He models 23% earnings per share growth. It is one of his favorites amongst the US banks.

US banks have positive outlook now. The curve flattering now might be not the best for them. A US government that us pro-growth favors them.

BAC vs. Wells Fargo? He's long the U.S. banks more than Canadian ones, given better economic growth down there. BAC is at the top of the U.S. banks for earnings growth. Prefers BAC over Wells. Once Wells overcomes the recent customer service controversy, it'll take time for the bank to recover.

After recovering from 2008, BAC should see more upside coming because it's closely tied
to the U.S. economy and the rising yield curve. A good buy.

He prefers US banks to Canadian banks, given where they are in the cycle. He owned this back in 2016 and it has done very well but the drivers of the growth that were expected in 2016 have now played their role. He doesn’t see a good risk-adjusted return in the near future for this stock.