Why It Is Time To Buy Bank Of America (BAC)

The bank's EPS growth estimates have improved, reflecting better net interest income and asset sensitivity. From the technical, we are also seeing uptrend signal posted.

This is confirmed with a nice trading above the 50-day MA period, this is encouraging, and we should be seeing another nice upside move.

Considering why analyst are upgrading BAC, we could see that BAC has managed to maintain a 23.17% growth year-to-date, this is going to rise with expectation of a better EPS when BAC report their quarterly earnings on 16 July 2024 pre-market.

There should be some focus on their earnings from interest income, but with rate cut discussion and decision still on-going, we might see BAC benefiting from it in the upcoming quarterly earnings.

Based on 20 Wall Street analysts offering 12 month price targets for Bank of America in the last 3 months.

The average price target is $41.03 with a high forecast of $48.00 and a low forecast of $35.20. The average price target represents a 0.24% change from the last price of $40.93.

After the signals for bullish crossover formed for MACD and also BUY signal from KDJ on 28 June, we can see that BAC is making a nice move upside.

This is a potential early upward movement, so this might be a good time to look at how the stock price might move. In the next section, I will try to show what is the estimated price target that BAC might move towards.

I used Supertrend to look at the price target for BAC, and it looks like there should be a nice upside towards $44, as we can see that BAC does have an early signal of upward movement from MACD and KDJ.

I personally would think that BAC could reach above $44 before attempting to clear $48.

Based on the technical and how BAC have performed YTD, it should be reasonable for analyst to upgrade their rating from neutral to buy, what we could look at is the price target before and after its earnings.

I would think this might be the time to buy BAC before its earnings on 16 July.

Appreciate if you could share your thoughts in the comment section whether you think BAC would go towards $44 when it report its quarterly earnings on 16 July.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.