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Bank Of America: The 2 Reasons Why This Bank Is Still A Buy
April 22, 2019
- Bank Of America reported strong Q1 2019 earnings that beat the consensus EPS estimate.
- There are two main reasons why I believe that investors should stay long the stock. Simply put, the investment thesis for Bank Of America remains intact.
- Bank Of America is my largest holding and I have no plans to reduce my stake.
Bank Of America's ($BAC) stock has performed well so far in 2019, as BAC shares are up ~21% while the S&P 500 (SPY) is up ~16% over the same period of time. However, BAC shares are still significantly underperforming the broader market over the last year.
I am a well-documented Bank Of America bull (see my Seeking Alpha profile for more detail) and, in my opinion, the bank's Q1 2019 results shows that the long-term story for this large financial institution remains intact. In this article, I will describe the 2 reasons why I believe that Bank Of America is still a great buy even at current levels (slightly above $30 per share).