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

Keep an eye on BAC for a run up to $14

   

At StateoftheMarkets.com, 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 Corp BAC Diversified Financial Services 8.3 +12.57% $12.80

Why We Like The Stock:

Bank of America Corp. (BAC) 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) with a positive technical set-up. Along with its main competitors JP Morgan Chase (JPM), and Citigroup (C), BAC has been steadily trending higher since July of 2012. While it has mostly kept pace with the S&P 500 this year, we like BAC’s more modest technical set-up and the fact that it consolidates often, which has helped establish strong support levels. Recently, BAC traded as high as $14 at the end of May, so there is plenty of short-term potential here. We like BAC above the 50-day moving average at $12.80, though the key level to watch here is really $13. Should it be able to hold $13 through what looks to be a volatile week (FOMC announcement on Wednesday), BAC looks poised to make a run back to $14.

We Would Be Buyers:

At the current price (~$13.18).

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: 8.3

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

Bank of America – Last 12 Months

bac 2 Bull's Eye Report: Bank of America (BAC)

Bank of America – Last Five Years

bac 3 Bull's Eye Report: Bank of America (BAC)

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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.


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