BAC Intrinsic Stock Value – Bank of America Common Stock Soars Following Impressive Q1 Performance
April 25, 2023
Trending News ☀️
Bank ($NYSE:BAC) of America (BA) is one of the largest banking and financial services corporations in the United States. Recently, the stock of Bank of America has been soaring following its impressive first quarter results. The common shares have outperformed the preferreds, as investors have been encouraged by the robust performance of the bank in Q1.
The impressive performance of Bank of America in Q1 has shareholders confident that the company will continue to do well in the coming quarters. The company’s solid fundamentals, ever-growing loan portfolio, and competitive dividend yields have investors eagerly awaiting what’s next for Bank of America’s stock.
Share Price
The stock opened at $29.8 and closed at the same price, down by a mere 0.4% from its prior closing price of $29.9. This was mainly due to a surge in consumer banking and wealth management businesses, as well as a decrease in credit costs. The bank’s performance has impressed investors and analysts, who have been encouraged by its strong financial standing. Bank of America continues to show resilience and growth in the midst of a turbulent economy, and the impressive Q1 results demonstrate its success in navigating through the pandemic. As such, investors have been quick to respond to the news and the stock has been on a steady rise since Monday’s market open. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BAC. More…
| Total Revenues | Net Income | Net Margin |
| – | 27.07k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BAC. More…
| Operations | Investing | Financing |
| -6.33k | -2.53k | -106.04k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BAC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.19M | 2.91M | – |
Key Ratios Snapshot
Some of the financial key ratios for BAC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.3% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – BAC Intrinsic Stock Value
GoodWhale has reviewed the financials of Bank of America (BAC) and calculated its fair value at around $37.4 per share. Our proprietary Valuation Line shows that BAC is currently undervalued by 20.4%, as the stock is trading at $29.8. Therefore, we believe that now is a great time to invest in Bank of America, as the stock is trading at a discount compared to its fair value. We have also identified several catalysts that could drive BAC’s share price up in the near future. For example, the bank’s effort to reduce non-performing assets and streamline its operations could help it improve its overall financial performance. Additionally, BAC’s exposure to growing markets like mobile banking and digital payments could help the bank remain competitive in the long run. More…
Peers
Bank of America Corp is one of the largest banks in the United States with over 5,000 branches. Its competitors are large banks such as Bank of Montreal, Citigroup Inc, and Bank of Nova Scotia. These banks offer similar products and services such as personal and business banking, loans, and investment products.
– Bank of Montreal ($TSX:BMO)
The Bank of Montreal has a market capitalization of 83.11 billion as of 2022. The company is a leading financial institution in Canada with over 200 years of experience. It offers a wide range of banking and financial services to retail, commercial and institutional clients. The Bank of Montreal has a strong presence in North America and is one of the largest banks in Canada.
– Citigroup Inc ($NYSE:C)
Citigroup Inc is an American multinational investment bank and financial services corporation with a market cap of $85.51 billion as of 2022. The company has over 200 million customer accounts and does business in more than 160 countries. It is one of the Big Four banks in the United States, along with JPMorgan Chase, Bank of America, and Wells Fargo. Citigroup was founded in 1812 as the City Bank of New York, and later became First National City Bank of New York. The company has its headquarters in New York City.
– Bank of Nova Scotia ($TSX:BNS)
Bank of Nova Scotia has a market cap of 79.27B as of 2022. The company operates as a financial institution providing banking and financial products and services to individuals, businesses, and governments. It offers deposit products, loans, credit products, foreign exchange, and wealth management services. The company serves customers through a network of branches and offices located in Canada, the United States, and other countries.
Summary
Bank of America reported strong first quarter results, with common stock outperforming preferred stock. These results suggest that the company’s investments are performing well and its portfolio is well diversified. Overall, Bank of America’s first quarter performance is positive and bodes well for its future prospects.
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