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Bank of America Continues Its Crazy Bull Run

The sizzling stock has doubled during the past 12 months

   

There’s no other way to say it: Bank of America (BAC) is on fire.

The entire financials sector has been killing it this year, with the Financial SPDR (XLF) boasting year-to-date gains that dwarf the broader market by 8 percentage points.

But lately, Bank of America has sprinted ahead of its rivals.

While the XLF, JPMorgan (JPM) and Wells Fargo (WFC) have each added around 7% during the past four weeks, Bank of America has more than doubled that run with a 16% climb — the bulk of which came in the lead-up to its earnings report. BAC has tacked on another 2%-plus today, making it the second-best Dow Jones Industrial Average performer behind American Express (AXP).

Such strong continued momentum has made BAC a doubler in the past 52 weeks, and technically speaking, its higher highs and higher lows provide some optimism going forward.

ycharts chart 27 Bank of America Continues Its Crazy Bull Run

But despite its climb — and headlines saying the stock has gotten expensive — BAC still is trading at a 28% discount to book. Plus, Bank of America is expected to grow earnings per share by 18% annually for the next decade, yet is trading at just 11 times next year’s earnings.

Mouth-watering valuations are common throughout the sector, though — just one of seven reasons InvestorPlace Editor Jeff Reeves recently said bank stocks remain a buy in the second half.

Still, with valuation as a common denominator, Bank of America has clearly risen above its peers.

As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2013/08/bank-of-america-continues-its-crazy-bull-run/.

©2014 InvestorPlace Media, LLC

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