I believe BAC will beat this second .Last year was one of the best 2nd Q too.
According to recent analyst survey data published by Yahoo! Finance, of 31 analysts polled, six recommend Bank of America (BAC) as a strong buy, 12 as a buy, 11 as a hold, and just one each as either underperform or sell.
The positive argument goes something like this:
The bank is simpler, leaner, and less risky than it was 10 years ago.
The $100 billion-plus it incurred in legal expenses and fines is now in the rearview mirror.
The bank is improving its cost structures, increasing efficiency.
Price is way undervalued with a Forward P/E 8.52
and a P/S of $1.78
FCAU is part of the herd mentality they can't see how much value is in the company.
At times a Company Announces Bad News
Even good companies face setbacks like litigation and recalls. However, just because a company experiences one negative event doesn't mean that the company isn't still fundamentally valuable or that its stock won't bounce back. Companies with real value can experience a significant drop in share price when something bad happens. However, investors often overreact to the magnitude of the information, opening up buying opportunities for value investors who strictly follow fundamental principles. Those who are willing to consider the company's long-term value and ability to recover can turn these setbacks into profit opportunities
Market Momentum and Herd Mentality
People invest irrationally based on psychological biases rather than analysis of market fundamentals. They buy when the price of a particular stock is rising or when the value of the market as a whole appears to be rising. They don't want to miss out on the gains that they assume others are achieving. They see that if they had invested 12 weeks ago, they could have earned 15% by now. They don't want to miss out on future increases of the same magnitude. They hear other people bragging about their paper profits and they want in.
Likewise, when the price of a particular stock is declining or when the value of the market as a whole appears to be falling, myopic loss aversion forces most people to sell their stocks. They don't want to lose everything, and they're afraid of the uncertain. So instead of keeping their losses on paper and waiting for the market to change directions, they accept a certain loss by selling. Such investor behavior is so widespread that it affects the prices of individual stocks, exacerbating downward market movements. (Such behavior also has a dramatic, negative effect on the portfolio returns of people who invest this way.)
Most FCAU short on the stock think that Fiat/Chrysler has to pay for the recall repairs and fines but it's not. Fiat/Chrysler and other car makers did not make the air bags and the electronic gearbox. Most of the responsibility is with the subs.
NHTSA imposes a record civil penalty of up to $200 million against Takata. (Of that, $70 million is a cash penalty, with an additional $130 million charge if Takata fails to meet its commitments.) Plus, the government agency requires Takata to phase out the manufacturer and sale of inflators that use the risky propellant and recall all Takata ammonium nitrate inflators currently on the road—unless the company can prove they are safe or can show it has determined why its inflators are prone to rupture.