Trade-Ideas: Bank Of America Corporation (BAC) Is Today's Post-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Bank of America Corporation as such a stock due to the following factors:
- BAC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.5 billion.
- BAC is up 2.1% today from today's close.
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More details on BAC:
Bank of America Corporation, through its subsidiaries, provides various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations, and governments in the United States and internationally. The stock currently has a dividend yield of 1.2%. BAC has a PE ratio of 44.6. Currently there are 10 analysts that rate Bank of America Corporation a buy, 2 analysts rate it a sell, and 7 rate it a hold.
The average volume for Bank of America Corporation has been 96.5 million shares per day over the past 30 days. Bank of America has a market cap of $168.7 billion and is part of the financial sector and banking industry. The stock has a beta of 1.20 and a short float of 0.9% with 1.11 days to cover. Shares are down 11.5% year-to-date as of the close of trading on Wednesday.
Analysis:
rates Bank of America Corporation as a
. 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.
Highlights from the ratings report include:
- The gross profit margin for BANK OF AMERICA CORP is currently very high, coming in at 87.12%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.35% is above that of the industry average.
- BANK OF AMERICA CORP's earnings per share declined by 13.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, BANK OF AMERICA CORP reported lower earnings of $0.35 versus $0.91 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $0.35).
- BAC, with its decline in revenue, slightly underperformed the industry average of 4.6%. Since the same quarter one year prior, revenues fell by 13.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income has decreased by 11.3% when compared to the same quarter one year ago, dropping from $3,439.00 million to $3,050.00 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BANK OF AMERICA CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full Bank of America Corporation Ratings Report.
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