NEW YORK (TheStreet) -- Shares of Bank of America  (BAC) - Get Report closed down 0.84% to $15.39 on Tuesday despite Goldman Sachs and Deutsche Bank naming the bank as a top stock pick.

The two firms came out with their first-quarter earnings previews on Tuesday and predicted mostly lackluster reports from the major U.S. banks. But both Goldman and Deutsche named Bank of America as a top stock pick and said they anticipate the stock going higher after the first-quarter earnings release, scheduled for release on April 15.

"BAC remains the best large bank play on a stronger US economy/higher rates and has good leverage to rising capital markets revenue (including FICC)," Deutsche wrote in a research note. "BAC has also made good progress reducing legacy mortgage costs (with more to come) and core expenses."

Insight from TheStreet's Research Team

Roger Arnold commented on Bank of America in a recent post on RealMoney.com. Here is what Arnold had to say about the stock:

The Federal Reserve is caught with a structural problem in the way it attempts to transmit monetary policy to the economy that makes raising rates problematic.

This column will be an extension of the issues I discussed in the column, "Where Banks Get Their Money," in which I introduced the concepts of "Fed funds sold" and "Fed funds purchased."

In this column I'll introduce the concept of the "Fed funds effective rate" (FFER), how it is calculated, how it affects the banking system, and why it presents the Fed with a big problem in attempting to raise the Fed funds target rate.

First, on the subject of Fed funds sold and purchased, there have been some changes in the composition over the past few years.

On the purchased side, there's been a substantial reduction for all four of the money centers. JPMorgan Chase  (JPM) - Get Report and Bank of America have reduced their carried Fed funds purchased by about 50% to about $94 billion and $34 billion, respectively.

Wells Fargo  (WFC) - Get Report and Citigroup  (C) - Get Report have also reduced their carried Fed funds purchased by about 25%, to $19 billion and $15 billion, respectively.

For the purposes of this column, I will just state that this is a positive sign of the ongoing balance sheet repair at the money centers.

- Roger Arnold, 'Effective Rate Puts Fed in in a Fix' originally published 3/24/2015 on RealMoney.com

Want more information like this from Roger Arnold BEFORE your stock moves? Learn more about RealMoney.com now.

Separately, TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

You can view the full analysis from the report here: BAC Ratings Report