Why Investors Should Look at Bank of America as a Great Buying Opportunity Compared to Citi Group and Wells Fargo

Bank of America Corporation (BAC) NYSE -CEO Brian Moynihan says U.S. economy starting to “Come out of the hole.”

Bank of America is the number one small business lender in the country.

Due to the Coronavirus pandemic the stock has taken a hit, but this is an opportunity to buy at these levels. Bank of America has consistently invested in share repurchases to boost shareholder returns. The share repurchase program is could reach $24.6 billion for the full year 2020.

Bank of America’s stock has rallied more than 44% in 2019 with the company’s share price increasing from over $24 in last January to around $35 by year-end. For the first quarter of FY 2020, the consensus estimate for earnings per share is in the range of $0.68 to $0.76 while net revenues are expected to remain around $23.14 billion. Total Revenues have increased 9% from $83.7 billion in 2016 to $91.2 billion in 2019, and are expected to grow 1% to $92.4 Billion in 2020

We believe this stock is undervalued. In comparison to Citigroup Inc. (C) NYSE – Nasdaq, Wells Fargo & Company (WFC) NYSE – Nasdaq.

 

Top Institutional  Holders

Berkshire Hathaway, Inc 925,008,600 Mar 30, 2020 10.66% 19,637,932,578
Vanguard Group, Inc. (The) 631,097,272 Mar 30, 2020 7.27% 13,398,195,084
Blackrock Inc. 542,031,197 Mar 30, 2020 6.25% 11,507,322,312
State Street Corporation 347,015,170 Mar 30, 2020 4.00% 7,367,132,059
FMR, LLC 241,447,583 Mar 30, 2020 2.78% 5,125,932,187

 

Top Mutual Fund Holders

Holder Shares Date Reported % Out Value
Vanguard Total Stock Market Index Fund 228,004,607 Dec 30, 2019 2.63% 8,030,322,258
Vanguard 500 Index Fund 161,738,061 Dec 30, 2019 1.86% 5,696,414,508
SPDR S&P 500 ETF Trust 93,512,780 Jan 30, 2020 1.08% 3,070,024,567
Vanguard/Wellington Fund Inc. 80,638,268 Feb 28, 2020 0.93% 2,298,190,638
Vanguard Institutional Index Fund-Institutional Index Fund 73,214,228 Dec 30, 2019 0.84% 2,578,605,110
Fidelity 500 Index Fund 71,422,538 Jan 30, 2020 0.82% 2,344,801,922

RATIOS/PROFITABILITY(TTM)

EPS2.45 Revenue69.2B   Gross Margin-

P/E9.92 ROE9.33%            Debt to Equity171.28%

EBITDA50,534.00              Net Margin26.51%

 

 

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