Bank of America (BAC)

(A Top Pick March 21/17. Up 40.77%) Continues to be one of his top 10 holdings. The story continues to play out. Tax changes help. Rising interest rates help. The growing US economy helps. Cost cutting helps. This is one that can continue to do very well. It's only trading at about 1.4X BV. It’s traded as high as 3X BV in the past.

He likes financials and US banks, and this is his greatest weighting. He owns Citigroup (C-N), J.P. Morgan (JP-N) and American Express (AE). He likes Bank of America, and thinks it will continue to benefit this year.

(For a 5-year hold?) Pretty well everybody in the sector has done a lot to take costs down, and make investments into digital enterprise. You have the combination of a rising rate environment that will be helpful. Credit quality across the group remains really strong. All this bodes well for the banks. She prefers Citigroup (C-N).

Wouldn't be a buyer at this level. He paid $6+, and it has done very, very well. There is still upside, partially because US interest rates are going up and partially because corporations will do better in the short run with better regulations. His initial sell target is $38+. He is happy to hold this.

Earnings are coming out on Thursday of next week. It closed at $30.66, and his model price is $32.16. He can see this racing up to $32.48. Thinks there is going to be a major dividend increase. He would be very disappointed if they don't at least double their dividend. Next year they are going to earn $2.35.

Bank of America (BAC-N), Boeing (BA-N) or Ali Baba (BABA-N)? His choice would definitely be Bank of America. Next week the news on US bank stocks will be a substantial hike in the dividends.

Own 2 or 3 US banks or an ETF? The ETF will do well, but Bank of America (BAC-N) is entering a sweet spot in the cycle. There are things they are doing in cutting costs. It has the most exposure to small businesses and US consumer. They’re entering a point where they can buy back a lot of stock and increase the dividend. He would choose this over an ETF.

(A Top Pick Nov 1/16. Up 87%.) There were a few tailwinds involved. Higher rates were expected, a better US economy, better regulation in the US and higher earnings.

Has never owned this in her clients' portfolios. It's a good proxy for a large cap US financial Bank. If you own this, keep holding it. It is going to benefit from an improving economy and from lower US corporate tax rates.

It depends on whether we ‘melt up’ or not. It seems there is a general consensus that it will be a decent year. You could buy this on a pull back to trend support or breakout. He is short a little on the banks. He would look to cover it on a pull back.

He really likes the US banks. It’s one of the sectors that money is going to go into. The chart showed a break out in mid-2017, and perhaps has a little bit of a pullback coming. On any kind of a pullback, he would be all over this. This applies to all of the US banks. (See Top Picks.)

This has participated well in the pro-growth theme and should continue to participate. The big money centred banks should get investor preference. Because they have a universal banking model, they are going to capture lots of business. You could also look at J.P. Morgan (JPM-N) or SPDR Financial ETF (XLF-N). (Analysts' price target is $31.25.)

Has liked this for a long time. It’s trading at about 13X next year's earnings. Trading at 1.2X Book, but he can see it eventually trading at 2X Book. There is a very simple story in the US banking industry. You are going to see profitability and earnings growth for a couple of reasons. 1.) The global economy is doing better and 2) credit quality will remain fairly good over the next while. Interest rates, if they go up, will help these areas. Banks are in a 5-10 year cost-saving binge, using technology more aggressively. If they can break through $30, it will go much higher. Dividend yield of 1.6%. (Analysts' price target is $30.)

This probably has the greatest leverage to a rise in interest rates. If you anticipate that the Fed is going to raise interest rates another three quarters of a point in 2018, chances are you are going to get a decent return of this bank. Also, with deregulation coming, he imagines you are going to see much bigger dividend increases.

Doesn’t think this is a time to buy in. They owned it and sold out of it toward the end of 2016 and 2017. The good news are already priced in. Cyclical. When they bought in 2016 it was trading around 8-9X earnings, today it’s around 13.5X earnings. The multiple expanded along with the fundamentals.Thinks the upside and fundamentals are already priced in. (Analysts’ price target is $30.25.)