Bank of America reported its latest quarterly earnings that surpassed analysts’ expectations.
The financial behemoth’s second-quarter earnings came in at 74 cents a share, compared to analysts’ estimates of 71 cent hare (based on Refinitiv poll of analysts).
Total revenue increased +2.1% to $23.2 billion, in line with analysts’ estimates.
However, the bank’s net interest margin declined 7 basis points from the first quarter to 2.44%, falling below the 2.47% that analysts had estimated for the second quarter.
The bank’s profit from its consumer banking business surged +13%year-over-year to $3.29 billion and revenue from the division climbed +5% to $9.72 billion.
But its fixed income trading revenue declined -8% to $2.13 billion, in line with estimates. Equities trading fell -13% to $1.15 billion, falling short of the $1.22 billion estimate. Profit in its global banking business fell -9% to $1.93 billion on a drop in capital markets deals.
BAC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 39 cases where BAC's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BAC's RSI Oscillator exited the oversold zone, of 33 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 May 17, 2023. You may want to consider a long position or call options on BAC as a result. In of 80 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 May 17, 2023. Looking at past instances where BAC's MACD turned positive, the stock continued to rise in of 41 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BAC advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 241 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 Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 cases where BAC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
BAC moved below its 50-day moving average on May 24, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BAC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend 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 fairly steady price growth. BAC’s price grows at a lower 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 worse than average 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 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 (0.894) is normal, around the industry mean (0.927). P/E Ratio (8.489) is within average values for comparable stocks, (17.444). Projected Growth (PEG Ratio) (4.250) is also within normal values, averaging (3.197). BAC has a moderately low Dividend Yield (0.031) as compared to the industry average of (0.056). P/S Ratio (2.354) is also within normal values, averaging (2.317).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BAC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a major bank
A.I.dvisor indicates that over the last year, BAC has been closely correlated with JPM. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if BAC jumps, then JPM could also see price increases.