This was more than two months ago, when the stock was trading at around $13. Since then, its shares have not moved. With second-quarter earnings due out on July 17, there are reasons to be more optimistic about the bank's upcoming results. (Shares were trading at $13.93 Tuesday morning.)
The Street will be looking for revenue of $22.78 billion, a 3.7% year-over-year revenue growth, while the bank is expected to report 25 cents per share in earnings. But revenue and EPS growth alone should not be how investors evaluate its performance.
I believe this was one of reasons that the stock shed more than 8% following the company's first-quarter earnings miss, reported in April. Even with the disappointment, it was an otherwise good quarter that went unnoticed.(JPM), which posted a decline in the same area of 6%. Even with the slippage in BofA's net interest income, I didn't believe then there was cause for concern. The fact that the stock has regained its losses since the April report suggests that the Street has come to this same realization. Over the past couple of months, management has been working to stabilize the business. So far, the results have been positive. Deposits have begun to change course, after posting declines the past couple of quarters. And as investors overreacted to the declines, many also seem to have forgotten that Bank of America still leads both JPMorgan and Wells Fargo (WFC) in overall deposits.
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