STOCK OF THE DAY: BANK OF AMERICA

Bank of America

Bank of America (BAC), is the second largest bank in the United States by assets. It manages over $2.38 trillion dollar, which is more than gross domestic product (GDP) of Russia ($1.67 trillion). Bank of America is behind JPMorgan Chase with less than $360 billion in term of asset management.

BAC has market capital of $213.6 billion and employees over 200 thousand people. It was founded in 1904 and is headquartered in Charlotte, North Carolina. The stock has 52-week low of $17.95 and high of $35.72. BAC trades around $24.63 on NYSE. Bank of America serves over 66 million clients worldwide. The stock has average daily trading volume of over 88 million shares.

BAC has beta of 1.4, which is more volatile compared to stock market and is scheduled to report next quarterly earnings on July 16, 2020 before market hours. BAC also has dividend yield of 2.92 percent, which is lower than 3.72 percent of JPMorgan.

BAC is one of the most famous and active stocks on brokerage platforms. On Robinhood, it is ranked as the 15th most traded stocks. Over 330 thousand traders hold onto shares of BAC on Robinhood. The stock is up over 28 percent past three months.

Wall Street analysts are optimist on BAC compared to other banks. 62 percent of the analysts recommend buying shares of BAC, while 38 percent recommend holding onto shares of stock, with zero sell recommendations. Compared to JPMorgan, only 48 percent of analysts recommend buying, and 4 percent recommend selling the stock at the current market price.

BAC is well-known for its retail banking and asset management services. Analysts have set average price target of $28.18 for the stock, which shows 14.46 percent upside from its current price. Both John Heagerty from Atlantic Equities and Chris Kokowski from Opppenheimer has price target of $36 for the stock.

BAC has over 70 percent institutional ownership and 1.09 percent short interest with 8.7 billion floating shares. With stocks skyrocketing, BAC has lost over ΒΌ of its market value. Most of the financial sector stocks have felt the hardest hit due to covid-19. As the recovery speeds up, BAC will have more opportunities to pick-up the trend and recovery the one-fourth market value that it has lost so far in 2020.  

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