Bank of America (BAC) Buy, Sell or Hold

Bank of America (BAC)

56.25

+0.05 (0.09%)

as of Jun 18, 2026, 10:42:05 pm Market Open.

492 watching

TOP PICK

It has a 3% dividend yield and trades at 0.8-0.9 times book value. They increased profitability by reducing costs. They took less of a loan loss provision than the other banks. They have a great balance sheet and will continue to pay their dividend. They have a great capital markets and wealth management business. (Analysts’ price target is $27.91)

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WEAK BUY

All the US banks are faced with a question of credit quality. How many defaults will there be? We don't know. But the banks are cheap, between 11-15x earnings, with a dividend. Hard to tell if the reserves will be enough. One strategy might be to buy 2 or 3, instead of just one. The sector is undervalued right now.

DON'T BUY

What is BAC's exposure to CLOs and is it risky? CLO: https://en.wikipedia.org/wiki/Collateralized_loan_obligation Doesn't know if they have an above-average exposure to CLOs, but why own any US bank now? What will happen to loan losses and low interest rates? Banks don't do well with low rates, unless the rates rise, but he doesn't see that happening, at least not much higher than present.

HOLD

It will be a difficult environment for banks for a moment. It depends on the recovery and how the pandemic plays out. You can't expect too much from banks right now. Looking at the medium term, 5-10 years, it is positive.

BUY

One of the best run banks in the US. Cheap multiple. Has grown its business, but kept costs down. Strong franchise. Difficult time over the next 6 months or so. Worth buying here. Yield is 3%.

BUY

BAC vs. JPM Both incredible companies. All bank stocks are trading at a substantial discount. JPM pays a nice dividend, and trades at a bit of a premium. BAC trades at 0.8x book. Both well run.

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TOP PICK

Stockchase Editor: Michael O'Reilly When Warren Buffet is a buyer, the market takes notice. He just purchased another $1.2 billion worth of shares at an average of around $24 over the past week. For arguably the strongest major US bank, BAC pays a good dividend that will certainly be sustainable, given only a 24% payout ratio. Analysts see over 15% upside in the share price. Knowing how the Oracle of Omaha invests, he might be targeting a return to even more lofty targets, near $36 -- the level it traded pre-pandemic. We also like the technical up trend of higher lows and would hold this unless it takes out key support around $22.50. Yield 2.85% (Analysts’ price target is $28.57)

COMMENT

A CLO is an off-balance sheet vehicle. In 2008, they were problematic. BAC has exposure, and so they could pay off or they could become toxic. One reason to sell banks coming up to a recession and buy on recovery.

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COMMENT

He doesn't know the details of BAC's business. But the US banks have been aggressive in setting aside capital for loan losses. {audio issues during his comment}

PAST TOP PICK

(A Top Pick Aug 15/19, Down 6%) The US banks will face tough quarters with higher loan loss provisions. But BAC is well diversified. The 3.5% dividend will be safe and will still buyback shares. It's cheap at these levels, according to book value for instance. The CEO is doing the right things in cutting costs by moving a lot more of their business onto the cloud. Headwinds are already baked into the share price.

BUY

A lot of negative sentiment has been out there regarding banks. BAC is a strong business, he favours JPM. They are both well diversified and have good valuations. The US banks were cleansed of the their toxic assets back in 2008-09. He would buy both.

BUY

He has recommended it for a long time. A great franchise, with a good yield, trades at 10 times earnings and only 0.8 times book value. A very cheap buy here. They are top ranked in investment banking and wealth management. A very strong franchise and conservative capital ratios. You can buy it here. He thinks it should trade at 1.5 times book. Yield 3.2%

PAST TOP PICK

(A Top Pick May 21/19, Down 19%) It is trading below book value. It is not a banking crisis. A lot of business comes from other areas. They stopped buybacks. They have room to increase dividends when things return to normal.

TOP PICK

They came out as a too big to fail bank. Their reserves are going up thanks to QE. They took advantage of free money, while tightening lending. Yield 3.06% (Analysts’ price target is $26.50)

TOP PICK

It is probably the highest quality bank in the US. Here it is EBV -3, 'at the blue'. This is a great opportunity. Insiders every day they are literally getting rid of regulations in terms of capital hits etc. Every day they strike out punitive regulations so when this is all said and done, these banks are going to be really good value. (Analysts’ price target is $32.92)

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