27.77 +0.01 (0.04%)
After hours: 7:30PM EDT
|Bid||27.75 x 1100|
|Ask||27.79 x 900|
|Day's Range||27.50 - 28.20|
|52 Week Range||22.66 - 31.91|
|Beta (3Y Monthly)||1.56|
|PE Ratio (TTM)||10.32|
|Earnings Date||Jul 17, 2019|
|Forward Dividend & Yield||0.60 (1.96%)|
|1y Target Est||33.40|
Financial institutions are getting caught in the downdraft created by the ongoing U.S.-China trade tensions. If trading activity slows, banks have fewer business deals to work on, hurting revenues. Bank of America (NYSE:BAC), which fell 4% last week, is set to erase the post-earnings rally that continued after its earnings report posted in April. At a recent price of $28.40, should investors consider BAC stock?Source: Shutterstock Bank of America reported first-quarter earnings of 70 cents, up 13% from last year but adding to its 27% CAGR since Q1 2015. Its operating leverage fell to 4%, while its share count dropped 7% to 9.8 billion.Expect management to continue its shareholder-friendly moves over the long-term. If investors view trade tensions as noise, then the stock's recent dip of around 5.4% in the last month created another entry point for investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Operating LeverageBank of America, like other banks, is investing heavily on its own business to gain operating leverage. It will increase spending in technology/digitization by 10% this year. Its physical delivery network expanded as it added 31 financial centers in new and existing markets in the last 12 months. These investments are already having a positive impact on the business. It now has 37 million active digital banking users, compared to 32 million in Q1 2016. Total payments topped $705 billion, with non-digital growing 3% year-over-year and digital up 8%. With each digital transaction displacing the traditional ones, Bank of America is saving on operating costs. * 10 Names That Are Screaming Stocks to Buy The growth in mobile channel usage and digital deposit transactions all point to the bank becoming an online bank giant. And while the growth in loans and leases may slow due to macro issues, Bank of America is building a leaner operation to grow profits. First-Quarter By the NumbersBank of America's client balances grew 4% while the average deposit size increased 5%. GWIM now has assets under management of $1.1 trillion. The company bought back $6.3 billion in shares and paid out $1.5 billion in dividends. The stock's dividend yields 2.12%. This is below Citigroup's (NYSE:C) 2.77% and Wells Fargo & Company's (NYSE:WFC) 3.94%. Overall, it returned 112% of net income to common shareholders.BAC stock is more attractive than Wells Fargo because the latter still has the account fraud scandal controversy to deal with. Rate Hikes on PauseThe Fed's pause on rate hikes is another negative headwind that investors should consider despite the strong quarterly report from Bank of America. Without rates rising, the growth in income from interest rate spreads will slow. Still, Bank of America's net interest income grew 5% year-over-year by $0.6 billion. It benefited from past rate hikes and loan and deposit growth. This was partially offset by loan spread compression.Steady Non-performing loans, consumer and commercial net charge-offs in the first quarter could worsen if the U.S. economy worsens. For now, trade war tensions are unlikely to hurt the economy, but investors consider an escalation in tariff levels as a potential risk for BAC stock. ValuationOnly nine analysts cover Bank of America stock and have an average price target of $35.33 (according to Tipranks). Conversely, investors could use a price-to-earnings multiple valuation model to determine the fair value of BAC stock. This involves comparing its value with Citi, Wells Fargo, JP Morgan (NYSE:JPM) and Morgan Stanley (NYSE:MS). With this model, the fair value of ~$30, giving an upside of 6%.Investors could instead choose WFC stock, whose P/E of 10X is similar to that of BAC stock. Citi's P/E is 9.5 times and its dividend yield is higher. Yet investors chose to sell the stock, too, by 4.2% in the week and 7.5% lower in the month. That is more than the drop in BAC stock. Your TakeawayTrade tensions will dominate the headlines and move BAC stock in either direction. But Bank of America demonstrated its transformation to digital banking is paying off regardless of the trade war stories.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post Why U.S.-China Trade Tensions Pulled Bank of America Stock Lower appeared first on InvestorPlace.
The Charlotte-based bank has pledged to hire at least 10,000 veterans, National Guard troops and reservists over the next few years.
In announcing the official name of Bank of America Tower May 22, project leaders offered a sneak peek at some of the perks offered by downtown Houston’s newest skyscraper.
Both JPMorgan (JPM) and Bank of America (BAC) are well poised for growth on the back of strong fundamentals. But JPMorgan holds an edge based on several factors.
Goldman Sachs Group Inc., Nomura Holdings Inc. and JPMorgan Chase and Co. are among those that have rewritten their forecasts as U.S. President Donald Trump threatens to impose a 25% tariffs on around $300 billion of additional Chinese imports. Analysts at Nomura have made that hike in duties -- which would mean practically all of China’s exports to the U.S. are hit by tariff hikes -- their baseline forecast.
Jennifer MacPhee on her new job: "It is great to be able to further my career in a national position and still be out of Albany. It's a great message to the area. It’s a huge job and there’s exciting potential."
After nearly two years of waiting, downtown Houston’s newest skyscraper has an official name. The 35-story Capitol Tower at 811 Rusk St. in the city’s Central Business District will now be called Bank of America Tower, officials announced at a May 22 press event. The tower takes its name from its anchor tenant, Charlotte, North Carolina-based Bank of America (NYSE: BAC), which preleased 210,000 square feet of space in the tower.
Investing.com - Tesla (NASDAQ:TSLA) fell sharply on Wednesday, as yet another broker offered up a bearish outlook on the electric automaker, warning the stock's steep decline could worsen.
U.S. stock futures are trading lower premarket. But, honestly, what's new? Down gaps are becoming a daily occurrence, only occasionally interrupted by an up gap. The headline for today is "the summer chop continues."Against this backdrop, futures on the Dow Jones Industrial Average are down 0.31%, and S&P 500 futures are lower by 0.38%. Nasdaq-100 futures have shed 0.60%.In the options pits, overall volume levels fell off a cliff yesterday. Calls proved more popular than puts adding to 14.6 million contracts versus 11.8 million traded for puts.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe ebb in put demand sent the CBOE single-session equity put/call volume skidding to 0.57 -- a two-week low. The 10-day moving average finally rolled over, falling to 0.71.Options trading for individual stocks was a veritable snooze fest. Many of the companies that landed on the top ten list didn't even exceed their average daily volumes. Today we'll breakdown Kohl's (NYSE:KSS), Bank of America (NYSE:BAC) and Micron Technology (NASDAQ:MU).Let's take a closer look: Kohl's (KSS)Kohl's reported earnings on Tuesday and investors were not pleased by the results. The selling frenzy took KSS stock down 12.3% amid colossal trading volumes. By day's end, 26 million shares had changed hands, marking the highest volume session since January 2017. * 10 Small-Cap Stocks That Look Like Bargains With the downdraft, shares of the retailer now sit at an eighteen-month low, submerged well beneath all major moving averages. The gap places KSS in no man's land from a price chart perspective, and that makes it challenging to build out a trade. Perhaps the best play is to wait for some type of relief rally, then deploy bear trades when it fails.For a more in-depth view on the earnings numbers, go here.On the options trading front, traders gobbled up put options. Activity ballooned to 522% of the average daily volume, with 76,111 total contracts traded; 62% of the trading came from put options alone.Ahead of the number, options were anticipating a gap of $4.25 or 6.7%, so the 12.3% doubled expectations. Volatility buyers via straddles or strangles won the day. Implied volatility fell throughout the day, landing at 36% or the 29th percentile of its one-year range. Bank of America (BAC)The price chart of BAC stock provides little excitement. Even when it's trending, it lacks the sexiness of a tech stock. Unfortunately, it doesn't even have that going for it. Outside of the quick jump that kicked-off the new year, BAC has been stuck in a choppy trading range between $28 and $30. At present, it's basing at the lower end of the range.If you're inclined to trade it, I suggest cash flow plays like covered calls and naked puts. Directional trades are too hard right now.On the options trading front, traders favored calls over puts. Total activity came in slightly below normal at 98% of the average daily volume, with 234,336 contracts traded. Calls claimed 34% of the sum.Implied volatility slipped to 24% placing it at the 25th percentile of its one-year range. Premiums are quickly becoming cheap here. The expected daily move is 44 cents or 1.5%. Micron (MU)The recent trade war flare-up has proved particularly painful for semiconductors. Since topping out last month, MU stock has fallen 20% -- entering a Wall Street defined bear market in the process. Yesterday's market rally lifted the ailing chip company from the depths, for a day at least. * 7 Safe Stocks to Buy for Anxious Investors Unfortunately, there's still plenty of overhead resistance and one up day does little to change the overall downtrend. More evidence is needed before the trend has turned higher.As far as options trading goes, puts were the hot ticket of the day. The total activity ended at 93% of the average daily volume, with 117,729 contracts traded. Puts accounted for 65% of the tally.Implied volatility dropped to 49% landing it at the 39th percentile of its one-year range. It's still high enough to make short premium strategies compelling. The expected daily move is now $1.11 or 3.1%.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post Wednesday's Vital Data: Kohl's, Bank of America and Micron Technology appeared first on InvestorPlace.
Green Dot Corp. said Wednesday it has entered a $100 million accelerated share buyback program with Bank of America Merrill Lynch . The bank, which targets low-income customers with a range of retail banking services, said it will receive an initial delivery of about 1.7 million shares. The final number will be based on its volume-weighted average stock price during the transaction, which is expected to be completed in 2019. Shares were up 2% in premarket trade, but have fallen 40% in 2019, while the S&P 500 has gained 14%.
Jeffrey Halley, a 30-year currency trading veteran and market analyst at Oanda Asia Pacific Pte, reckons the pair could fall below 70 in the next two months. “Aussie-yen is the best bellwether for risk-off,” said Sean Callow, senior currency strategist at Westpac Banking Corp. “I don’t see a quick resolution to the U.S.-China trade war before the Group-of-20” meeting next month, he said. With U.S. President Donald Trump bringing the trade spat back to the fore by threatening to impose tariffs on almost all Chinese imports, investors are looking to benefit not just from potential downside in the Aussie, but also from gains in the yen, which is proving to be the most sought-after haven currency.
Dubai-based Mashreqbank has hired Citi and Bank of America Merrill Lynch (BAML) as joint bookrunners for a "tap" of a $500 million bond the bank issued in February, sources close to the matter said.
Give credit where credit is due. The new leaders of General Electric (NYSE:GE), most notably CEO Larry Culp, have pledged to be more transparent with investors. That honesty already has boosted GE stock, which has gained some 40% so far this year.Source: Shutterstock As bearish as I've been on GE, the optimism makes some sense. Culp worked wonders at Danaher (NYSE:DHR). GE has some valuable assets. Its problem areas -- notably Power and GE Capital -- have weighed on the stock in part because the bad news never seemed to end. As I wrote a little more than two years ago, GE clearly lost investors' trust. In the interim, Culp, CFO Jamie Miller, and other executives have made regaining that trust a priority.The problem -- as General Electric stock climbed above $10 yesterday before falling back -- is that GE is being honest about real problems with the business at the moment. Meanwhile, GE stock might seem "cheap" given its long fall from $30+, but it still has a market capitalization of $86 billion -- and a larger amount of debt and pension expense.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCulp and Miller have time to fix General Electric and they well might succeed. But there's a long way to go and still some success priced in at $10. GE Gets HonestIt's an interesting argument as to whether management's increased transparency has helped GE stock. Certainly, there have been short-term relief rallies, starting with the 7% pop that came when Culp was named CEO at the beginning of October. In late January, GE missed estimates in fourth quarter earnings -- and the stock still soared after Culp projected improvement in the struggling Power business, albeit not until 2020. Meanwhile, 2019 guidance in March similarly disappointed, and yet GE stock rose again, with Culp calling 2019 a "reset year." * 10 Retirement Stocks That Won't Wilt in a Bear Market When Culp talks, investors cheer. And he literally has put his money where his mouth is, buying more than $2 million in GE stock last year. He's also laid out a strategy for GE to be slimmer, more nimble and more financially solid. The dividend was cut again, saving cash flow to pay down debt, and assets are up for sale to drive further deleveraging. Importantly, GE has been crystal-clear in detailing those strategies.The latest example of that came last Wednesday. JPMorgan Chase (NYSE:JPM) analyst Stephen Tusa long has been bearish -- and right -- on General Electric stock. In a note released Wednesday morning, Tusa said the company still was managing the headlines in its Power business, seemingly highlighting a big order number cited by Reuters on Tuesday, a report which Tusa said overstated the early success of the turnaround in Power.It hardly seems a coincidence that hours later, CFO Miller told a conference that the company still expected "significantly negative" free cash flow from Power this year, and that Q1 orders didn't signify a change in trend. Indeed, it looks like GE management wants not even the appearance of trying to obscure the real problems facing Power -- and the business as a whole. Will It Help GE Stock?It's a worthwhile strategy. But it's also worth noting that for all the optimism so far, it hasn't actually worked. General Electric stock is down almost 9% from where it traded the day before Culp's hiring was announced. The YTD rally seems due at least in part to the recovering broad market -- and many of the short-term bumps driven by management commentary have soon fizzled.Meanwhile, GE is being honest but it's important to listen to what management actually is saying. Miller said Wednesday that margins in Power won't recover for at least three years. Culp said in March that free cash flow outside GE Capital would be negative this year.The sale of GE Biopharma to Danaher for $21.4 billion will help the balance sheet. But it also sends a key earning asset out the door, and -- again, according to management -- limits the likelihood of a spin-off of GE Healthcare. Even with GE Capital, which has driven several multi-billion dollar charges in recent years, Culp hasn't made any promises that all the problems are solved. General Electric Stock Has a Long Road AheadThe transparency coming from GE is welcome … and a long time coming. Shareholders and potential investors deserve to know what they're getting into. Perhaps more importantly, a turnaround -- for GE or for any other company -- can't happen until or unless management truly understands what needs to be fixed. * 7 Stocks to Buy that Lost 10% Last Week But the problems here are real. GE stock hasn't collapsed because of negative coverage from Tusa, or pressure from short sellers, or just because former CEOs Jeff Immelt and John Flannery weren't paying attention. The power industry on the whole is shrinking. GE Capital took risks similar to those that hurt big banks like Bank of America (NYSE:BAC) and Citigroup (NYSE:C) last decade; it simply took this long for some of the costs to come to light.So while it's worth appreciating the newfound honesty at GE, it's also worth listening to that honesty. Cash flow is negative. Power is years away from improving while the market for gas-powered turbines may continue to shrink. (Admittedly, some observers see growth.) GE Capital may still have some issues to iron out.Aviation, Renewable Energy, and Healthcare have value but I argued a year ago that even with that strength, the fair value of GE stock looked to be about $9-$11 per share. Honesty is helpful, but it doesn't change that core problem.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Yield REITs to Buy (Even When the Market Tanks) * 5 Great Blue-Chip Stocks to Buy Today * 7 Tech Stocks to Buy That Are Also Perfect for Retirement Compare Brokers The post Honesty Is A Good Start But Not Enough To Boost General Electric Stock appeared first on InvestorPlace.
Futures in New York ended a choppy trading session 0.5% higher, as investors digested conflicting supply and demand signals. For the moment, they were won over by Saudi Energy Minister Khalid Al-Falih’s push this weekend for the OPEC+ coalition to “stay the course" on output curbs. “You’ve got some conflicting influences on the market and the price action today is pretty indicative of that," said Tyler Richey, co-editor at Sevens Report Research in Palm Beach Gardens, Florida.
Bank of America has disclosed the closure of another eight branch locations this week – including four in rural North Carolina.
The brokerage pioneer recounts the company's 1983 "game-changing sale to Bank of America — and how, in the end, the merger almost doomed his organization,” according to a description of the book.
Let's see if Bank of America Corporation (BAC) stock is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks.
Pioneer investor Charles Merrill's secret to success was that he knew doing the right thing by his clients was also a profitable business model.