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's Indicator enters downward trend
The Aroon Indicator for BAC entered a downward trend on March 10, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 146 similar instances where the Aroon Indicator formed such a pattern. In of the 146 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 12, 2026. 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 .
The Moving Average Convergence Divergence Histogram (MACD) for BAC turned negative on February 13, 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 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
BAC moved below its 50-day moving average on February 11, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BAC crossed bearishly below the 50-day moving average on February 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 11 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
BAC broke above its upper Bollinger Band on February 06, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BAC's RSI Indicator 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 Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BAC advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward 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 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 28, placing this stock slightly worse than average.
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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (1.240) is normal, around the industry mean (1.409). P/E Ratio (12.572) is within average values for comparable stocks, (13.010). Projected Growth (PEG Ratio) (0.901) is also within normal values, averaging (4.120). Dividend Yield (0.023) settles around the average of (0.040) among similar stocks. P/S Ratio (3.253) is also within normal values, averaging (3.620).
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