Top Stock to Buy #3 – Bank of America Corp. (BAC)
Bank of America Corp. (NYSE:BAC) is the second largest U.S.-based financial holding company with global assets of $2.13 trillion. Earnings for 2011 were just $0.01, but estimates for 2012 range from $0.34 to $0.49, and the average estimate for 2013 is $0.96.
BAC, along with other bank stocks, was upgraded in December by the well-known bank analyst Meredith Whitney, who said, “The banks right now are more adequately capitalized,” and she took special note of BAC as undervalued.
Technically, BAC broke from a 10-month cup-and-handle formation in early December, and confirmed the break by rising to a new high at $11.69. The trading target for BAC is $14. Longer term the stock could trade in the low $20s.