Portfolio Grader currently ranks Bank of America Corp (NYSE:BAC) a Hold. With unique fundamental and quantitative metric based, this analytical tool assesses nearly 5,000 stocks weekly. This represents no change from the previous week and is the same ranking BAC has had from Portfolio Grader for 2 months. The Hold recommendation for Bank of America Corp is the outcome of an analytical process that is proprietary which generated conclusions that were above average in 1 area: an industry group rated above average in attractiveness; and produced below average results in 5 areas: an economic sector ranked below average in attractiveness, a ranking in its sector group that is in the middle third, ranking in its industry group that is in the third quarter, analytical scoring that is below average, and a numerical calculation of risk/reward that is average.
The company is one of 31 companies within the Major Banks GICS industry group, which is in turn part of the 990 company GICS Finance sector. BAC's market value is $331.3 billion which places it in the top decile in its industry group The ranking for BAC by Portfolio Grader places it 22 among the 31 companies in this industry group, giving it a below-average spot.
Portfolio Grader currently ranks the Finance sector number 16 among the 20 sectors in its universe putting it in the bottom quartile of all the GICS sectors. The Major Banks industry group is ranked 59 among the 129 industry groups within the GICS sectors, placing it near the average in terms of the Proprietary Quantitative Score scoring system.
BAC has received above-average scores in 1 of the 8 fundamental metrics used by Portfolio Grader and average or below-average scores in 7 of the areas evaluated in the ranking of company stocks.
The company's operational scores are below the industry norms for sales growth, operating margin, and earnings growth. Scores for visibility of earnings are mixed, with a ranking for earnings revisions that is much better than the industry average but rankings for earnings surprises and earnings momentum worse than average. BAC's scores for cash flow and return on equity are worse than its industry group average. Bank of America's fundamental scores give BAC a place in the bottom quartile of the industry group.
Portfolio Grader uses the Proprietary Quantitative Score to gauge BAC's shares from the viewpoint of risk/reward. This exclusive scoring approach assesses the relative value of BAC's shares based on the recent $32.2 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Considering this risk/reward calculation, the company currently scores as average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.