Why Bank of America (BAC) Stock Is Climbing Today
NEW YORK (TheStreet) -- Bank of America (BAC) - Get Report stock is gaining 3.50% to $14.50 in mid-afternoon trading on Wednesday, as investors expect that minutes from the Federal Reserve's April meeting will reinforce the belief that the central bank could soon raise rates.
Minutes from the Fed's last policy meeting are due today at 2 p.m. EDT.
San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart both said yesterday that the Fed could increase interest rates at its June meeting, while Dallas Fed President Robert Kaplan later called for rate increases "in the not-too-distant future," the Wall Street Journal reports.
"We would benefit from a more normal rate environment," Bank of America CFO Paul Donofrio said at the Barclays (BCS) Select Franchise Conference today, CNBC adds. "If rates would get there faster, it would help" boost the bank's returns.
Also benefiting bank stocks today, presumptive Republican presidential nominee Donald Trump indicated yesterday that he would "dismantle" the Dodd-Frank regulation if he became president, which would likely improve bank profitability, Bloomberg notes.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Bank of America's strengths such as its good cash flow from operations, expanding profit margins and notable return on equity outweigh the fact that the company has had sub par growth in net income.
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.
