Bank of America Lagging As The Street Prices In Some Odd Developments


  • Bank of America has lagged since earnings, with above-average rate sensitivity seen as a risk if the Fed turns more dovish.
  • Bank of America has improved its business on many fronts and it would take a sharp drop in the Fed Funds rate (around 250bp-300bp) to justify today’s valuation.
  • While Bank of America isn’t my favorite large bank, it’s hard to reconcile the current valuation with the quality and likely trajectory of the bank’s earnings.

Bank of America Plaza


If you’re going to assume that the market is wrong about a stock, it helps to have a few reasons or explanations in mind. In the case of Bank of America (NYSE:BAC) and the stock’s lagging performance

Disclosure: I/we have a beneficial long position in the shares of JPM, TFC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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