- Bank of America reported Q3 2018 results that beat the top- and bottom-line estimates.
- The Street is concerned about the bank's lackluster loan growth, but, in my opinion, the positives from the quarter far outweigh the negatives.
- I am long Bank of America and I would go longer if I was not already overweight the stock.
Bank of America ($BAC) has been a top-2 position in the R.I.P. Portfolio for several years now, but I am more bullish about this bank today than I have been over the last 12-18 months. BofA's stock has significantly outperformed the broader market over the last 1-, 3- and 5-year periods, but, more recently, BAC shares have failed to impress.
BofA's stock is also down since it reported Q3 2018 results, but, in my opinion, this bank has promising long-term business prospects and the stock is trading at an attractive valuation. Therefore, I believe that BAC shares are a long-term buy at today's price.
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