Bank of America’s loan growth fell short of some of its competitors, while its advisory fees income declined in the third quarter. However, the bank's Q3 profits soared year-over-year on the back of rapid cost reductions.
Bank of America's total loan book grew 0.3 % in Q3 2018, compared to the year-ago period. This was lower than that of JPMorgan Chase & Co.'s 6% and Citigroup Inc.’s 4%.
Bank of America's fees earned from advisory services on mergers declined 26% in the quarter. Revenues from sales and trading fell 5 percent. According to a Reuters report, Chief Financial Officer Paul Donofrio said in a conference call with reporters that Bank of America is working to improve its M&A business after losing market share.
In spite of its headwinds, the bank managed to generate solidly positive year-over-year growth in profits - thanks to its cost cutting strategies. By reducing employee headcount, closing unprofitable branches and obliterating old technology systems, the bank has saved billions of dollars in annual costs. The bank’s Q3 profit surged +34% to $6.7 billion from $5 billion a year earlier.
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where BAC declined for three days, in of 307 cases, the price declined further within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where BAC's RSI Oscillator exited the oversold zone, of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 22, 2024. You may want to consider a long position or call options on BAC as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BAC just turned positive on April 23, 2024. Looking at past instances where BAC's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
BAC moved above its 50-day moving average on April 18, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BAC advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .
BAC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 257 cases where BAC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. BAC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 60, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.125) is normal, around the industry mean (0.945). P/E Ratio (12.182) is within average values for comparable stocks, (8.857). Projected Growth (PEG Ratio) (3.860) is also within normal values, averaging (2.584). Dividend Yield (0.025) settles around the average of (0.100) among similar stocks. P/S Ratio (3.075) is also within normal values, averaging (2.430).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a major bank
Industry MajorBanks