Tag: Yahoo Finance

Buy Bank of America Stock for What It Is

It's easy to see why investors are excited about Bank of America (NYSE:BAC) stock. Many bank stocks such as JPMorgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC) had prosperous years in 2019. Still, BAC stock stood out from the rest. As much as investors cheered that result, the majority of the stock's gains happened in the fourth quarter. In the last three months of 2019, BAC stock price rose nearly 24%.Source: Tero Vesalainen / Shutterstock.com In fact, Bank of America has reported strong earnings growth over the prior five years (ending in 2018). And the bank's earnings are projected to grow 12.7% in 2020. That would be in line with the five-year industry average of 12.7%.However, when banks stocks start behaving like small-capitalization growth stocks, it gives me pause. And that's why it's important to remember that bank stocks are traditionally among the more conservative elements in your portfolio. There may be...