Bank Of America: Worth The Wait

Summary:

* Bank of America's stock has significantly underperformed the broader market so far in 2020.

* The bank reported Q3 2020 results that were not well-received by the market. However, I believe that investors will be rewarded for holding onto their BAC shares.

* I'm long Bank of America, and I have no plans to reduce my stake in the near future.

Bank of America's ($BAC) stock has been under pressure since the company reported Q3 2020 results, which only adds to the already disappointing YTD stock performance.

The Q3 2020 operating results were not well-received by the market due to several reasons but, in my opinion, the bank's long-term investment thesis remains intact. Therefore, I think that investors with a time horizon longer than a year or two should seriously consider staying the course with their BAC position. I believe the long-term performance of BAC shares will make holding onto the stock through this environment worth the wait.