Bank of America Is An Easy Buy Going Into 2023


  • Bank of America has a chance to generate $40B of pretax, pre-provision net revenue in 2023 if a few things bounce its way.
  • The bank is valued at about 9.4x forward earnings, which is way too cheap given its low-risk business profile and consistent earnings quality.
  • Bank of America’s stock dropped 24% last year despite strong business performance, and is poised for a rebound as credit outperforms the draconian assumptions implied in the price.
Bank Of America Reports Quarterly Earnings

Justin Sullivan

As we enter into a new year, I think it is finally time to reexamine how we look at banks and their valuations. In the last 13 years, banks have dealt with increased regulation, higher capital requirements, and a historically low interest rate environment, which pressured

Disclosure: I/we have a beneficial long position in the shares of BAC 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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