Bank of America (BAC, $29.32) Soars 7% After Record Earnings Report
Bank of America’s Q4 2018 profit tripled to a record $7.3 billion, owing to strong performance from its consumer-banking business and the lower corporate tax rate. On the back of this better-than-expected performance, shares of the company rose by +7.16% on Wednesday of last week. Another confidence booster for the investor community was the bank's announcement to buy back shares (common stock) worth $26 billion.
The company's net interest income for the fourth quarter, a widely followed measure of profitability for banks, touched 2.48% versus analyst expectations of 2.45%.
This is not the only quarter the bank performed better than expected. In Q3, the banks earnings per share stood at 73 cents compared to analysts' estimate of 63 cents, whereas the $22.7 billion revenue generated during the third-quarter surpassed the expected $22.397.
According to CEO Brian Moynihan, operating leverage based on disciplined expense management, solid asset quality, and loan and deposit growth drove this quarter's results.
Profits in consumer banking business grew by 52% on a y-o-y basis to $3.3 billion, whereas the loan book increased by about 1.9%. Credit and debit card spending also expanded by 6%.
However, like most banks BAC faltered in the fixed-income trading business, where revenue fell by 15% to $1.45 billion compared to analysts estimates of $1.62 billion. This decline, however, was nicely offset by an 11% rise in equities trading revenue to $1.1 billion. Overall, sales and trading revenue grew by 1% on a y-o-y basis to $2.6 billion.
Other banks topping expectations this week include Goldman Sachs (GS), Wells Fargo (WFC) and Citigroup (C).
BAC sees MACD Histogram just turned negative
BAC saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on November 13, 2025. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 46 instances where the indicator turned negative. In of the 46 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 13, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on BAC as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
BAC moved below its 50-day moving average on November 20, 2025 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 .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BAC advanced for three days, in of 337 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 300 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 26, placing this stock worse than average.
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 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 (1.354) is normal, around the industry mean (1.321). P/E Ratio (14.087) is within average values for comparable stocks, (12.133). Projected Growth (PEG Ratio) (0.988) is also within normal values, averaging (4.392). BAC has a moderately low Dividend Yield (0.021) as compared to the industry average of (0.041). P/S Ratio (3.729) is also within normal values, averaging (3.401).
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a major bank
Industry MajorBanks
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