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.
|Bank of America||BAC||Diversified Financial Services||7.0||+1.16%||$11.72|
Why We Like The Stock:
Bank of America (NYSE: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) that is holding up relatively well despite this morning’s major selloff. Like other big banks, including JPMorgan Chase (NYSE:JPM) and Citigroup (NYSE:C), BAC has maintained a positive technical setup despite recent market volatility that has ruined a lot of charts that aren’t Consumer Staples or Utilities (defensive sector) stocks.
Last week, BAC crossed above its short term moving averages, which is a bullish sign. After about a 1% pullback this morning, BAC still sits above its 50-day moving average, which should be a good entry point. Recently, the stock traded as high as $12.94 in mid-March, which means it has plenty of short-term upside. The question is really if it will hold up this week as global growth concerns mount. The stock also reports earnings before the open on Wednesday. So, while it is a bit of a gamble, BAC is a strong chart and is still a relatively discounted price considering its long-term value.
We Would Be Buyers:
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 non-banking 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.
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.
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.
Bank of America – Last 3 Months
Bank of America – Last 12 Months
Bank of America – Last 5 Years