Can Bank of America See Rising Prices?
With shares of Bank of America (NYSE:BAC) trading around $14, is BAC an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Bank of America is a financial institution serving individual consumers, small- and middle-market businesses, corporations, and governments with a range of banking, investing, asset management, and other financial and risk management products and services. Through its banking and various non-banking subsidiaries throughout the United States and in international markets, the company provides a range of banking and non-banking financial services and products through five business segments: consumer and business banking, consumer real estate services, global banking, global markets and global wealth and investment management, and other.
Bank of America has agreed to pay $160 million to settle a racial discrimination case after African American financial advisers accused the bank of not offering them the same opportunities as white staff members. According to The New York Times, which broke the story, that amount is the largest an American employer has ever paid in a racial discrimination suit.
T = Technicals on the Stock Chart Are Strong
Bank of America stock has been moving higher over the past several quarters. The stock is currently trading slightly below highs for the year, so it may need time to regain its footing. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, Bank of America is trading slightly above its rising key averages, which signals neutral to bullish price action in the near-term.