Bull’s Eye Report: Bank of America (BAC)

by Dave Moenning | September 12, 2013 1:40 pm

Bull’s Eye Report: Bank of America (BAC)

At StateoftheMarkets.com[1], we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Bank of America BAC Banking 8.9 +26.18% $14.04

Why We Like The Stock:

Bank of America (BAC[2]) is our most compelling buy today due to the fact that it is a top-rated stock (in terms of earnings strength and company/industry performance). While other major banks like JPMorgan Chase (JPM[3]) and Citigroup (C[4]) have faltered lately, BAC consolidated beautifully throughout August, using the 50-day moving average as a turning point towards the end of the month. The stock bounced right off of the 50-day, and is now back on the upswing. With resistance overhead at $15, there is still plenty of upside to a short-term trade with BAC. However, the stock has been steadily uptrending since July 2012, so we wouldn’t be surprised by a breakout above $15 early next week. We like BAC at current prices for a hold above the late August lows ($14.04).

We Would Be Buyers:

At the current price (~$14.53) or on a pullback to the 50-day moving average ($14.32).

Company Profile:

Bank of America Corporation (Bank of America) is a bank holding company, and a financial holding company. Bank of America is a financial institution, serving individual consumers, small and middle market businesses, corporations and Governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking and various nonbanking subsidiaries throughout the United States and in international markets, the Company provides a range of banking and nonbanking financial services and products through five business segments: Consumer & Business Banking (CBB), Consumer Real Estate Services (CRES), Global Banking, Global Markets and Global Wealth & Investment Management (GWIM), with the remaining operations recorded in all Other. In February 2013, announced the sale of International Wealth Management Business Outside the United States to Julius Baer Group. Effective March 20, 2013, it acquired 10.4% interest in Freenet AG.

Stock Rating: 8.9

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Bank of America – Last Three Months

bac 1 Bulls Eye Report: Bank of America (BAC)[5]

Bank of America – Last 12 Months

bac 2 Bulls Eye Report: Bank of America (BAC)[6]

Bank of America – Last Five Years

bac 3 Bulls Eye Report: Bank of America (BAC)[7]

Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”[8]

At the time of publication the editor and affiliated companies own the following positions: BAC

Note: Positions may be bought or sold while this publication is in circulation without notice.

Endnotes:
  1. StateoftheMarkets.com: http://www.StateoftheMarkets.com
  2. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  3. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  4. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  5. [Image]: http://investorplace.com/wp-content/uploads/2013/09/bac-1.png
  6. [Image]: http://investorplace.com/wp-content/uploads/2013/09/bac-2.png
  7. [Image]: http://investorplace.com/wp-content/uploads/2013/09/bac-3.png
  8. Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”: http://stateofthemarkets.com/wp-content/uploads/2013/08/Top5SpecialReport.pdf

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