Bank of America Corp. (BAC): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Monday, April 15, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Bank of America Corp BAC Diversified Financial Services 7.0 +1.16% $11.72

Why We Like The Stock:

Bank of America Corp (BAC) is our most compelling buy today due to the fact that it is a top- rated stock (in terms of earnings strength and company/industry performance) that is holding up relatively well despite this morning's major selloff. Like other big banks JP Morgan Chase (JPM) and Citigroup (C), BAC has maintained a positive technical setup despite recent market volatility that has ruined a lot of charts that aren't Consumer Staples or Utilities (defensive sector) stocks. Last week, BAC crossed above its short term moving averages, which is a bullish sign. After a ~1% pullback this morning, BAC still sits above its 50-day moving average, which should be a good entry point. Recently, the stock traded as high as $12.94 in mid-March, which means it has plenty of short-term upside. The question is really if it will hold up this week as global growth concerns mount. The stock also reports earnings before the open on Wednesday. So, while it is a bit of a gamble, BAC is a strong chart and is still a relatively discounted price considering its long-term value.
We Would Be Buyers:

At the current price (~$12.05).

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Company Profile:

Bank of America Corporation (Bank of America)is a bank holding company, and a financial holding company. 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 nonbanking subsidiaries throughout the United States and in international markets, the Company provides a range of banking and nonbanking financial services and products through five business segments: Consumer & Business Banking (CBB), Consumer Real Estate Services (CRES), Global Banking, Global Markets and Global Wealth & Investment Management (GWIM), with the remaining operations recorded in all Other. In February 2013, announced the sale of International Wealth Management Business Outside the United States to Julius Baer Group. Effective March 20, 2013, it acquired 10.4% interest in Freenet AG.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: BAC

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Bank of America Corp - Last 3 Months

  Bank of America Corp - Last 12 Months

  Bank of America Corp - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Banking and Loans , Stocks

Referenced Stocks: BAC , C , JPM

David Moenning


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