Bank Of America: The Stock Is Worth Holding Through The Uncertainty
Bank of America's stock has significantly outperformed the broader market so far in 2021, even after factoring in the recent dip.
The bank reported Q2 2021 results that were not well-received by the market. However, I believe that investors will be rewarded for holding onto their BAC shares through the uncertainty.
We're long Bank of America, and we have no plans to reduce our stake in the near future.
Bank of America's (NYSE:BAC) stock has performed well so far this year, as shares are outperforming the broader market by almost 10 percentage points over the last 7+ months.
More recently, however, the stock has been under pressure as concerns about the bank's near-term prospects have outweighed what I would consider a solid quarterly earnings report. To this point, BAC shares are down over 5% since the bank reported its Q2 2021 results.
BofA's earnings report was not well-received by the market due to several reasons, but, in my opinion, the long-term investment thesis for this bank 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, even through this period of uncertainty.
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