The firm shows a Beta (market volatility) of 1.1841, which signifies a somewhat significant risk relative to the market. Let's try to break down what B of A's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, B of A will likely underperform. Even though it is essential to pay attention to
Bank Of America historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Bank Of America exposes twenty-seven different technical indicators, which can help you to evaluate its performance.
Bank Of America has an expected return of -0.26%. Please be advised to confirm Bank Of America
jensen alpha,
maximum drawdown,
semi variance, as well as the
relationship between the
sortino ratio and
potential upside to decide if
Bank Of America performance from the past will be repeated at some point in the near future.
What is the right price you would pay to acquire a share of Bank of America? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Bank of America this year
Annual and quarterly reports issued by Bank of America are formal
financial statements that are published yearly and quarterly and sent to Bank stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Bank of America often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
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
Earning per share calculations of B of A is based on official Zacks consensus of 8 analysts regarding B of A's future annual earnings. Given the historical accuracy of 93.37%, the future earnings per share of the company is estimated to be 3.49 with the lowest and highest values of 3.36 and 3.53, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.
Is B of A a risky opportunity?
Let's check the volatility. B of A is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind B of A (NYSE:BAC) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of a B of A stock makes you a part-owner of that company.
Bank Of America Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Bank Of America. The B of A consensus assessment is calculated by taking the average estimates from all of the analysts covering B of A
| Strong Buy9 | Buy1 | Hold3 | Sell1 | Strong Sell1 |
| Strong Buy | 9 | 60.0 |
| Buy | 1 | 6.67 |
| Hold | 3 | 20.0 |
| Sell | 1 | 6.67 |
| Strong Sell | 1 | 6.67 |
Our take on today B of A rise
Current coefficient of variation is at -793.47. Bank Of America exhibits very low volatility with skewness of 0.95 and kurtosis of 1.39. However, we advise investors to further study Bank Of America technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure B of A's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact B of A'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 stocks as prices fall.
B of A Implied Volatility
B of A's implied volatility exposes the market's sentiment of Bank Of America stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if B of A's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that B of A stock will not fluctuate a lot when B of A's options are near their expiration.
Our Final Take On B of A
Whereas few other entities in the banks—diversified industry are either recovering or due for a correction, B of A may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor sell any shares of B of A at this time. The Bank Of America risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to B of A.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Bank of America. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com