BAC is fairly valued here. Sells at a premium to TBV as do the other TBTFs, and the current multiple is relatively high. But eps are certainly ramping up as BAC gets beyond the 2008 - 2010 debacle. If BAC returns to historic P/Es, ROAs and P/BVs, BAC shares would trade in the 26/sh to 30/sh range based on $2.15 eps. A few years off so it isn't much help to a day trader but it is always important to think of earnings potential especially in a highly leveraged industry like banking. Keep your eyes on the prize.
It is still trading under book value. While it isn't the screaming bargain it was last year, I think it is still under valued at these levels. The current P/E is 19 but the P/E based on expected 2015 earnings is around 11. I thin BAC can justify trading at a forward P/E of 14 or at 1-1.2 times book. Either of those would put the stock somewhere in the low 20s. Be patient everyone. If you are a long term holder of this stock like I am then you've been through a lot. But now is not the time to panic. In a couple of years I'm fairly certain that $17 BAC shares will be considered a bargain. And who knows what the dividend will be by then?
I couldn't agree more. It is all about earnings from this point on and that is not a bad thing. I think BAC is well positioned to leverage an improving mortgage market and the key distractions are coming to an end. A strong EPS this quarter will show investors that they are worth a higher P/E and P/B.
NOT overvalued here. Book is now about 21. 00 or close. Most in this sector are at book + 50-60% or more.
Big issue with BAC(and we are long) is that H F Trading via computerized algos are keeping the PPS down.
Study this and you will understand who and why it is being done. We believe that with no further regulation on HF Trading this Stock with be "stuck" in the PPS "channel(17-20) indefinitely.
I have been long BAC for a couple of years now. Over the last two years there have been several catalysts that helped advance the stock. Legal settlements, New BAC cost savings, the economy improving, share buybacks, etc. With the recent dividend increase I don't see any events that would take BAC significantly higher from here. Is it time to move on? Any constructive comments would be appreciated.
It depends on your time frame. If you gonna flip for quick gains, you'll may end up disappointed.
If your stick around 6-18 months, you may see $18-25 over share. Stock gone from about $5-17 in 2 years. A whooping $10+ in gains for those that held long. Most were expecting $20 by April or May. I guess OPEx may get stuck below $18. But BAC may gain over $18 just in a matter of 3 days or so. The big question is when those 3 days will begin.