Bank of America could also be especially sensitive to a prolonged fiscal cliff drama because of the stock's valuation. The shares were up 79% year-to-date when they closed at $9.90 Friday, following a 58% decline last year. While the shares look cheap at 0.7 times their reported Sept. 30 tangible book value of $13.48, they trade for more than 10 times the consensus 2013 earnings estimate of 97 cents a share, among analysts polled by Thomson Reuters, which is relatively pricey, when compared to the rest of the "big four" U.S. banks:
- Shares of Citigroup (C - Get Report) closed at $36.03 Friday, returning 37% year-to-date, after dropping 44% in 2011. The shares trade for 0.7 times their reported Sept. 30 tangible book value of $52.70, which is a similar valuation to Bank of America. However, the shares have a much lower forward P/E ratio, trading for 7.8 times the consensus 2013 EPS estimate of $4.64.
- Shares of JPMorgan Chase (JPM - Get Report) closed at 41.09 Friday, returning 27% year-to-date, following a 20% decline last year. The shares trade for 1.1 times tangible book value, according to Thomson Reuters Bank Insight, and for 7.7 times the consensus 2013 EPS estimate of $5.32.
- Wells Fargo (WFC - Get Report) closed at $33.20 Friday, returning 24% year-to-date, following a decline of 10% during 2011. The shares trade for 1.6 times tangible book value, according to Thomson Reuters Bank Insight, and for 9.2 times times the consensus 2013 EPS estimate of $3.63
Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.
-- Written by Philip van Doorn in Jupiter, Fla.>Contact by Email. Follow @PhilipvanDoorn