B of A Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>BOA</div>
BAC -- USA Stock  

USD 33.01  0.98  2.88%

As many millenniums are trying to avoid financial services space, it makes sense to go over Bank Of America a little further and try to understand its current market patterns. As we have suggested previously, B of A is beginning its slip as investors shift to be more bearish due to the increased sector volatility. Bank Of America slowly supersedes the market. The returns on the market and returns on B of A appear slightly correlated for the last few months. Strong basic indicators of the company may suggest signs of short-term price drift for investors. Bank Of America is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 14th of October 2020. The stock is undergoing above-average trading activities.
Published over three months ago
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Should you trade B of A (NYSE:BAC) based on current technical indicators?
The company's average rating is Hold from 17 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on B of A market sentiment investors' perception of the future value of B of A. Let us look at a few aspects of B of A technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Bank Of America. In general, we focus on analyzing B of A stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build B of A's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of B of A's intrinsic value. In addition to deriving basic predictive indicators for B of A, we also check how macroeconomic factors affect B of A price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of B of A's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of B of A in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as B of A. Your research has to be compared to or analyzed against B of A's peers to derive any actionable benefits. When done correctly, B of A's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Bank Of America.

How does B of A Stands against Peers?

Analyzing B of A competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to B of A across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out B of A Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for B of A, but it might be worth checking our own buy vs. sell analysis

Purchase by Berkshire Hathaway Inc of 9626515 shares of B of A

Legal trades by B of A insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
B of A insider trading alert for perchase of common stock by Berkshire Hathaway Inc, the corporate stakeholder, on 19th of November 2020. This event was filed by Bank Of America Corp with SEC on 2020-07-22. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at B of A Downside Variance

Bank Of America has current Downside Variance of 3.29. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance 
 = 
SUM(RET DEV)2 
N(ER) 
 = 
3.29
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N(ER) = Number of points with returns less than expected return for the period
Let's now compare B of A Downside Variance to its closest peers:
BAC
CM
CS
EWBC
BAC3.29
CM0.69
CS2.96
EWBC4.79

Will B of A price slip impact its balance sheet?

Current Sortino Ratio is up to -0.02. Price may slip again. Bank Of America has relatively low volatility with skewness of -0.08 and kurtosis of -0.33. However, we advise all investors to independently investigate Bank Of America to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Perspective on B of A

Whereas some other entities under the banks?diversified industry are still a bit expensive, B of A may offer a potential longer-term growth to investors. Taking everything into account, as of the 13th of October 2020, we believe that at this point, B of A is very steady with average odds of financial turmoil within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our overall 30 days buy-hold-sell advice on the company is Hold.

About Contributor

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 Gabriel Shpitalnik do not own shares of Bank Of America. Please refer to our Terms of Use for any information regarding our disclosure principles.

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