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Bank of America's Overvalued Stock Faces More Declines

Michael J. Kramer

Bank of America Corp.'s ( BAC) stock is about 13% off its 2018 highs, but things may get worse for a number of key reasons. The bank's stock is still expensive as it trades near its peak price to tangible book value, a key measure used to value bank stocks. Worse, analysts have been slashing their earnings estimates for the coming third quarter results on October 15, and they see full-year earnings growing slower than the previous forecast.