Bank Of America: The Stock Is Worth Holding Through The Uncertainty

Summary:

• 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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