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.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where BAC advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 259 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 RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 March 20, 2024. 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.
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 outstanding price growth. BAC’s price grows at a higher 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 outstanding 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 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 59, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (1.137) is normal, around the industry mean (0.966). P/E Ratio (12.312) is within average values for comparable stocks, (9.005). BAC's Projected Growth (PEG Ratio) (9.003) is slightly higher than the industry average of (2.511). BAC has a moderately low Dividend Yield (0.025) as compared to the industry average of (0.053). P/S Ratio (3.108) is also within normal values, averaging (2.517).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a major bank
Industry MajorBanks