BAC - Bank of America: No Good Incentive To Turn Bullish Ahead Of Q1 Earnings

2024-04-11 10:24:13 ET

Summary

• Bank of America has generated healthy returns of 38% in the past six months, outperforming the S&P 500 by close to 2x.
• BAC will publish Q1 results on the 16th of April, and we pick out some of the major sub-plots that could dominate the event.
• The higher for longer narrative should hold BAC in a good position given its relatively high asset sensitivity, but forward valuations no longer look attractive.
• We don't believe the risk-reward on the long-term charts look appealing, and the stock may not benefit from rotational interest.

Introduction

Bank of America ( BAC ), the global financial behemoth with $3.2 trillion in assets, has done rather well for its shareholders in recent periods. Over the past six months, it has managed to generate returns of 38%, which translates to almost double the returns of the S&P 500....

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