Bank of America's Downgrade
Bank of America's shares have now declined by 2% during 2013. The shares rose 110% during 2012, after dropping 58% during 2011. The shares trade for 0.9 times their reported Sept. 30 tangible book value of $13.48, and for 11.8 times the consensus 2013 earnings estimate of 97 cents, among analysts polled by Thomson Reuters. The consensus 2014 EPS estimate is $1.27. Bank of America's forward price-to-earnings ratio is rather high when compared to the rest of the "big four" banking club, and even looks high when compared to the high-flying U.S. Bancorp ( USB), which was trading for just 10.8 times the consensus 2013 EPS estimate of $3.08 when the shares closed at $33.27 on Wednesday. And none of the big four have come close to matching USB's stellar return on average tangible common equity of 21.60%, according to data supplied by Thomson Reuters Bank Insight.