This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Bank Stocks Wilting Under the Summer Sun

3. Bank of America

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Shares of Bank of America (BAC - Get Report) was among the top Dow performers in the first quarter, rising 71%.

Since the end of the first quarter, the stock has shed 25%. Year-to-date, it is still up by about 28%.

Bank of America has had a much-needed reprieve from negative headlines this year. Concerns about capital adequacy, which raged throughout last year have abated significantly after the bank easily passed the Fed's annual stress test.

The bank learned from its earlier lessons, wisely choosing not to request the regulator to allow it to return more capital. That saved it the embarrassment of being rejected, a fate suffered by rival Citigroup (C - Get Report)..

Unlike last year, most of the negative headlines in recent months have revolved around its peers Citigroup, JPMorgan, Goldman Sachs and Morgan Stanley.

Still, analysts are worried about its ability to generate earnings that justify its valuation, given low interest rates, higher expenses and continuing legacy mortgage issues and legal costs.

"Until the company can show progress in substantially reducing its operating expenses we believe the consensus EPS expectations remain too high," Stifel Nicolaus analyst Chris Mutascio wrote in a recent report. "Our 2013 EPS estimate of $0.85 remains well below the consensus estimate of $1.04. That gap has to narrow before we take a more constructive view on the shares."

Analysts remain skeptical of the company's prospects with only 7 rating it a buy, while 22 have a neutral rating on the stock and two analysts have a sell rating.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ZION $29.94 -0.03%
BAC $17.44 -0.17%
C $54.08 -0.18%
HBHC $29.34 -0.14%
JPM $66.86 0.12%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs