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Kick-off of profit season
The big banks were surprised to start their latest earnings season on Thursday, causing the following headlines:
- “Major banks are bullish on recovery.”
- “Jim Cramer reacts to big bank earnings. I was surprised.”
- “The pandemic for big banks is over. Now the difficult part is coming.”
Bank of America Corp. (NYSE: BAC). Earnings per share was $ 0.85, 14 cents higher than analysts expected.
It also reported a revenue beat, reporting $ 22.87 billion in the third quarter of 2021. Analysts have set a $ 21.8 billion standard.
BAC shares on Thursday were a good enough beat to rise 4.5%.
Morgan Stanley (NYSE: MS), Citigroup Inc. (NYSE: NS) And Wells Fargo & Co. (NYSE: WFC) Also, it exceeded expectations and showed a positive attitude toward the long-awaited profit season.
Green Zone Rating: Bank of America Corporation (NYSE: BAC).
After the blockbuster revenue call, I had to search for BAC on Adam O’Dell’s own GreenZone Ratings system.
Adam built this model to value equities based on six factors that have been proven to drive higher-market returns. (Read more about the six elements at the end of this story.)
Our team runs this model daily in a universe of over 8,000 equities and ranks it based on a “comprehensive valuation.” These ratings range from 0 to 100, with 0 being the “worst” and 100 being the “highest.”
And above all? It’s on our website! Feel free to use it to search for stocks on the radar. Read this handy guide Get started now.
Its 48 valuations are sufficient to put Bank of America shares in the “neutral” category. In short, BAC can be expected to perform in line with the market as a whole in the next 12 months.
A neutral rating does not surprise me, but I would like to focus on that “bullish” rating for individual factors.
Bank of America Stocks Volatility score is impressive 87..That is, BAC Low volatility Than all but 13% of the 8,000 shares we value.
It 78 momentum score, And you have inventories rising at a steady pace. You can see the BAC price fluctuations over the last two years in the chart below.
BAC gets a high momentum score
Stock market indices have been volatile over the past month and a half. However, BAC has managed to rise 12% since its recent lows on September 21st.
You need to see if BAC can ride the post-earning pop, but this is the stock on your radar beyond this earnings season.
And if you are looking for more play within the financial sector after big bank earnings, you should check out Adam’s premium stock research service, Green Zone Fortune.. Adam recommended two stocks in the wider financial world.
- Community bank stock NS Almost perfect 98 green zone rating.. Next week’s revenue call could trigger a 50% increase in the next 12-18 months.
- A brokerage firm with huge growth potential (not Robin Hood!). Last year alone, net income increased by more than 130%!
Evaluation factors for the green zone
Momentum — — Strong upward trend Earn stocks taller than Evaluation of momentum. We prefer to buy stocks that are already on a higher trend than the entire market at a faster rate. This approach can increase the chances of success and reduce risk.
worth — — Cheaper Earn stocks (also known as “cheap”) taller than Valuation. We prefer to buy good companies at good prices because the price we pay affects future profits. Overpayment of stocks can be a costly mistake.
quality — — High quality Companies earn taller than quality evaluation. Of course, we prefer to buy a high quality company! To determine quality, the model considers, among other things, the company’s profitability, profit margin, cash flow, debt ratio, and operational efficiency.
growth — — High growth Companies earn taller than growth rate. Because everything is the same, we prefer to buy companies that are growing both revenue and revenue at a faster pace than the market or economy.
size — — smaller company earns taller than Size evaluation. We usually prefer to buy a small company for the additional “juice” that comes with them.
Volatility — — Low volatility Earn stocks taller than Volatility assessment. We recommend low volatility stocks as they have low heartburn and have proven to produce good risk-adjusted returns in the long run.
Assistant Managing Editor, Money & Market
Bank of America Jump Starts a Lucrative Earnings Season Source link Bank of America Jump Starts a Lucrative Earnings Season