Bank of America: A Mix Of Common And Preferred Stock Makes Sense Now

Impact · against what's priced in

The outlook for Bank of America is slightly negative as the company signals a weaker Q3 performance, undermining the fragile revenue stability the market currently expects. While the valuation is noted as appealing by the author, it does not offset the downward pressure of revised projections.

BAC−0.20

Challenges what's priced in

The price assumes

A continuation of current consumer banking, wealth management, and global banking revenue near $191.6 billion with minimal growth.

The company is walking back its projections for the third quarter, which directly contradicts the price's requirement for steady-state revenue near $191.6 billion.

What BAC's price assumes · Sep 3

• valuation▲10%
• banking
• earnings
• dividends
• BAC
• options trading
• preferred stock

Top 1 mover · tap to explore