Margin Breakdown
0.31
Operating Profit Margin
0.17
Net Profit Margin
0.31
Pretax Profit Margin
| Pretax Profit Margin | 0.31 | |
| Operating Profit Margin | 0.31 | |
| Net Profit Margin | 0.17 | |
| Gross Profit Margin | 0.7 |
Should you continue to rely on Bank of America (USA Stocks:BAC) management?
 | By Aina Ster | Macroaxis Story |
Buy on the rumor, sell on the news. This old Wall Street adage may hold true for Bank of America (BAC) as we head into June. Despite the bank's strong performance over the past year, with a 52-week high of $38.495, there are signs that a pullback may be on the horizon. The bank's shares are currently trading above both the 50-day moving average of $36.3062 and the 200-day moving average of $31.793, which could indicate overvaluation. Additionally, the bank's beta of 1.388 suggests higher volatility compared to the overall market.
The short interest in the bank's stock also paints a cautionary picture. With 67.8 million shares shorted in the prior month, representing 0.95% of the total shares, there is a potential for a downward pressure on the stock price. The short ratio of 1.65 further indicates that it would take about 1.65 days for short-sellers to cover their positions, a scenario that could trigger a sell-off.
Furthermore, the bank's estimated EPS for the current quarter stands at $0.76, which is lower than the next year's estimate of $3.32. This could be a sign of slowing growth. The Wall Street target price is $37.09, slightly below the current price, suggesting that the stock may be fully valued.
In conclusion, while Bank of America has shown strong performance and remains a dominant player in the diversified banks sector, investors should be cautious of a potential pullback in June. Currently, Bank of America's Enterprise Value is anticipated to rise significantly, based on recent years' reports. The Dividend Yield for the current year is projected to increase to 0.04, while the Price To Sales Ratio is expected to decrease to 2.18. The primary aim of this article is to provide our perspective on Bank of America for June and forecast its value for shareholders.
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Reviewed by Rifka Kats
With a Coefficient of Variation at 838.71 and a Mean Deviation of 1.01, Bank of America's stock shows a high level of volatility, indicating a potential pullback in June. Despite a promising EPS Estimate for the current quarter at $0.76, the high Beta of 1.388 suggests that the stock is more reactive to market volatility, which could lead to a potential downside.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Bank of America. Your research has to be compared to or analyzed against Bank of America's peers to derive any actionable benefits. When done correctly, Bank of America's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Bank of America.
Main Points
Approximately 13.0% of Bank of America's shares are owned by company insiders. This refers to the stake held by the bank's officers, directors, relatives of the leadership team, or any individuals with access to non-public information. These insider holdings can provide insights into the company's strategic direction. For our latest analysis of Bank of America, including detailed ownership information, click here.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Bank of America. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Bank of America
How important is Bank of America's Liquidity
Bank of America financial leverage refers to using borrowed capital as a funding source to finance Bank of America ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank of America financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Bank of America's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Bank of America's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Bank of America's total debt and its cash.
Bank of America Gross Profit
Bank of America Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Bank of America previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Bank of America Gross Profit growth over the last 10 years. Please check Bank of America's gross profit and other fundamental indicators for more details.
Breaking down Bank of America Indicators
Bank of America has relatively low volatility with skewness of -0.12 and kurtosis of 0.41. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bank of America's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bank of America's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
As the saying goes, "buy on the rumor, sell on the news." Bank of America (BAC) has been on a steady climb, with a 50-day moving average of $36.31 and a 200-day moving average of $31.79. However, with a PEG ratio of 3.69, which is higher than the industry average, and a probability of bankruptcy at 46.21%, the stock may be overvalued. The Wall Street target price is $37.09, slightly below the current price, indicating a potential pullback. Furthermore, the short ratio of 1.65X suggests that some investors are betting on a price decline. While the bank's net income of $26.52 billion and cash flow from operations of $44.98 billion are robust, investors should tread carefully in June..
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Bank of America. Please refer to our Terms of Use for any information regarding our disclosure principles.