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 in upward trend: price expected to rise as it breaks its lower Bollinger Band on August 20, 2026
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 25 of 35 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 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 03, 2026. You may want to consider a long position or call options on BAC as a result. In 51 of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 68%.
Following a +1.69% 3-day Advance, the price is estimated to grow further. Considering data from situations where BAC advanced for three days, in 222 of 344 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
The Aroon Indicator entered an Uptrend today. In 172 of 287 cases where BAC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 60%.
Bearish Trend Analysis
The 10-day RSI Indicator for BAC moved out of overbought territory on August 13, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In 26 of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at 58%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 36 of 70 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 51%.
The Moving Average Convergence Divergence Histogram (MACD) for BAC turned negative on August 17, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 21 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 47%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 2 (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 38 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 19, placing this stock slightly worse than average.
The Tickeron Price Growth Rating for this company is 42 (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 44 (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 Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 70 (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 (1.588) is normal, around the industry mean (1.928). P/E Ratio (14.478) is within average values for comparable stocks, (15.436). Projected Growth (PEG Ratio) (0.947) is also within normal values, averaging (1.358). Dividend Yield (0.019) settles around the average of (0.025) among similar stocks. P/S Ratio (3.945) is also within normal values, averaging (3.980).
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Industry MajorBanks
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