NEW YORK (TheStreet) -- Bank of America (BAC) - Get Report stock slumped 2.99% to $12.16 in Tuesday's trading session after JPMorgan (JPM) announced that it is building up reserves against bad oil loans.
Shares of rival financial companies such as Wells Fargo (WFC), Goldman Sachs (GS) and Morgan Stanley (MS) were dragged down as well today.
JPMorgan announced that it plans to hold an additional $600 million for losses tied to the energy, metals and mining sectors, CNBC.com reports.
If oil prices stay at or below $25 per barrel, the bank anticipates that it will need to put aside another $1.5 billion to cover potential losses over the next 18 months.
"The market is still pretty tenuous, so the ability for the market to handle negative headlines right now is not very high," R.J. Grant, associate director of equity trading at KBW, told the Wall Street Journal.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Bank of America's strengths such as its revenue growth, growth in earnings per share, increase in net income, attractive valuation levels and expanding profit margins 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
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.