In their forecast for the coming year, published on Monday, the strategists at Bank of America ( NYSE:BAC ) Global Research predicted that the S&P 500 would not have moved significantly in the subsequent roughly 12 months.
Projection of Stock Prices, Including Bank of America Stock
Bank of America stock ( NYSE:BAC ) has recently been one of the most sought-after stocks on Zacks.com. As a result, consider some data that could influence the stock’s performance in the near term.
Shares of this country’s second-largest bank have returned +2.3% in the last month, outperforming the +1.8% move in the Zacks S&P 500 composite. Bank of America’s industry, Zacks Banks – Major Regional, has gained 3.3% over this time.
In light of the expectation that annual earnings per share for the S&P 500 will fall by 9% to $200 in 2019, equity analysts at BofA have set a year-end price target for the benchmark index of 4,000 for 2023. This represents a rise of less than 1% from Monday’s closing price of 3,963.94.
This earnings decline is approximately 15% lower than the most recent estimates. In the worst-case scenario envisioned by the bank, the S&P 500 might drop to a level as low as 3,000.
“One of the reasons we are more sanguine on earnings is the health of corporate and consumer balance sheets,” Savita Subramanian, head of U.S. equity strategy and quantitative strategy, told reporters on Monday. “One of the reasons we are more sanguine on earnings is the health of corporate and consumer balance sheets.”
As a result of wage increases that will outstrip companies’ ability to raise prices, profit margins will continue to decline, which is one reason why the bank is pessimistic about the near term. According to data conducted by BofA, only fifty percent of the companies in the S&P 500 are seeing real sales growth, and the underlying sales number...
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