Bank of America’s earnings for the fourth quarter came in at 85 cents a share—beating analysts’ expectations of 77 cents per share (according to FactSet data).
Revenue rose +11% from the year-ago quarter to $24.5 billion in the quarter, which exceeded estimates of $24.2 billion.
Amidst a rising interest rate environment, Bank of America’s net interest income increased +29% to $14.7 billion for the quarter as the bank received higher interest payments on the loans it issued.
The bank had a $1.1 billion provision for credit losses, up $1.6 billion compared with the same quarter in 2021, but mentioned that net charge-offs remain below pre-pandemic levels. Average loans and leases for the bank grew +10% year-over-year, while the same for consumer banking climbed +6%.
Bank of America’s chief executive Brian Moynihan said, “We ended the year on a strong note, growing earnings year over year in the fourth quarter in an increasingly slowing economic environment”.
“The themes in the quarter have been consistent all year as organic growth and rates helped deliver the value of our deposit franchise,” Moynihan added.
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 296 cases, the price declined further within the following month. The odds of a continued downward trend 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 .
The Momentum Indicator moved below the 0 level on June 01, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on BAC as a result. In of 81 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 May 24, 2023 date and that indicates a change from an upward trend to a downward trend.
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 33 resulted in an increase in price. Tickeron's analysis proposes that 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 .
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 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 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 (0.879) is normal, around the industry mean (0.923). P/E Ratio (8.342) is within average values for comparable stocks, (17.405). Projected Growth (PEG Ratio) (4.177) is also within normal values, averaging (3.201). BAC has a moderately low Dividend Yield (0.032) as compared to the industry average of (0.057). P/S Ratio (2.314) is also within normal values, averaging (2.306).
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.