The company's average rating is Buy from 12 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. About
71.0% of the company shares are held by institutions such as insurance companies. Bank Of America has price-to-book (P/B) ratio of 1.16. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity last dividend was issued on the 3rd of December 2020. The firm had
2:1 split on the 30th of August 2004.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Bank of America. In general, sophisticated investors focus on analyzing Bank of America stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Bank of America'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
Bank of America's intrinsic value. In addition to deriving basic predictive indicators for Bank of America, many experienced traders also check how macroeconomic factors affect Bank of America 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, anticipate that the market will even out over time. This tendency of Bank of America's 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 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.
How does Bank Stands against Peers?
Analyzing Bank of America 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 Bank of America 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
Bank of America Competition DetailsBank 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.
Closer look at B of A Mean Deviation
Bank Of America has current Mean Deviation of 1.78. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
Mean Deviation | = | SUM(RET DEV) N |
| = | 1.78 |
| SUM | = | Summation notation |
| RET DEV | = | Sum of return deviations of B of A |
| N | = | Number of calculation points for selected time horizon |
Let's now compare B of A Mean Deviation to its closest peers:
| BAC | 1.78 |
| CM | 0.78 |
| JPM | 1.66 |
| C | 1.87 |
Will B of A investors exit after the slip?
Current information ratio is at 0.12. Bank Of America has relatively low volatility with skewness of 2.11 and kurtosis of 9.9. 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 Conclusion on B of A
Whereas some companies within the banks—diversified industry are still a little expensive, even after the recent corrections, B of A may offer a potential longer-term growth to investors. While some in two-three weeks oriented investors may not share our view, we believe it may not be a good time to take over new shares of B of A.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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 Ellen Johnson do not own shares of Bank of America. Please refer to our
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