Bank of America Corp's (NYSE:BAC) current Hold recommendation is grounded on analytical scoring that is below average, a ranking in the company's sector group that is in the top half, a ranking in its industry group that is in the top half, and a mathematical computation of risk/reward that is much better than average. BAC derives some benefit of being in an industry group that is ranked well above average in investment attractiveness; however, its sector is ranked below average in attractiveness which may offset this to a degree. Portfolio Grader currently ranks BAC as a Hold. With proprietary fundamental and quantitative analytical, this analytical tool assesses nearly 5,000 stocks weekly. The current Portfolio Grader recommendation on the shares has been in place for 3 months.
As one of the 988 companies in the GICS Finance sector the company is a component of the 31 company Major Banks GICS industry group within this sector. BAC has a market value of $328.7 billion which is in the top 10% of its industry group The ranking for BAC by Portfolio Grader places it 15 among the 31 companies in this industry group, putting it in the second quartile.
Portfolio Grader currently ranks the Finance sector number 12 among the 20 sectors in its universe putting it in the third quartile of all the GICS sectors. The Major Banks industry group is ranked 24 among the 129 industry groups within the GICS sectors, placing it above-average in terms of the Proprietary Quantitative Score scoring system.
BAC has realized 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.
BAC'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 metrics for cash flow and return on equity are worse than its industry group average. Based on these fundamental scores, Bank of America places in the bottom quartile of the industry group.
Portfolio Grader quantitatively measures BAC's shares using the Proprietary Quantitative Score. This metric looks at BAC's shares from the viewpoint of risk/reward. This unique scoring system evaluates the relative value of BAC's shares based on the recent $31.95 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Using this risk/reward calculation, the company currently scores above-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.