Bank of America’s (BAC, $29.07) minimum wage will rise to $20 by 2021
Starting May 1, 2019, North Carolina-based Bank of America is raising its hourly minimum wage for branch tellers and other such entry level position holders to $17. This will further increase incrementally over the next two years and is targeted to reach $20 an hour by 2021. The bank has also zeroed-in on health-care cost increases for lower-paid employees.
This step came only a day before, when the bank’s CEO along with the CEOs of other five banks including J.P Morgan Chase (JPM) were scheduled to testify before the Democrat-led House Financial Services Committee in Washington. Low wages is an pressing issue for the 2020 election and this step could be timely and strategic to diffuse any criticism in the near future.
The issue is indeed alarming, owing to the gap between high salaried employees and the low waged ones like bank tellers. In fact, about one-third of bank tellers rely on some form of public assistance like Medicaid to food stamps. In 2017, Bank of America raised its minimum wage from $13.50 to $15 an hour.
The step is an optimistic sign that wages are finally rising. Nearly after a decade of the Great Recession, companies like Amazon and Walmart had already raised the minimum wages for their employees ahead of the federal rules. A bill to raise the federal minimum wage from $7.25 an hour to $15 an hour is already doing rounds in the Congress.
BAC in upward trend: price rose above 50-day moving average on May 02, 2025
BAC moved above its 50-day moving average on May 02, 2025 date and that indicates a change from a downward trend to an upward trend. In of 36 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where BAC's RSI Indicator exited the oversold zone, of 28 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 April 17, 2025. You may want to consider a long position or call options on BAC as a result. In of 84 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 April 17, 2025. Looking at past instances where BAC's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for BAC crossed bullishly above the 50-day moving average on May 07, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher 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 329 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.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for BAC moved below the 200-day moving average on April 16, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
The Aroon Indicator for BAC entered a downward trend on April 08, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 32, placing this stock slightly 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 Seasonality Score of (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 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 (1.125) is normal, around the industry mean (0.958). P/E Ratio (12.182) is within average values for comparable stocks, (8.937). Projected Growth (PEG Ratio) (3.860) is also within normal values, averaging (2.643). BAC has a moderately low Dividend Yield (0.025) as compared to the industry average of (0.053). P/S Ratio (3.075) is also within normal values, averaging (2.460).
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Industry MajorBanks