With shares of Bank of America (NYSE:BAC) trading around $14, is BAC an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Bank of America is a financial institution serving individual consumers, small- and middle-market businesses, corporations, and governments with a range of banking, investing, asset management, and other financial and risk management products and services. With its banking and various non-banking subsidiaries throughout the United States and international markets, the company provides a range of banking and non-banking financial services and products through five business segments: consumer and business banking, consumer real estate services, global banking, global markets, global wealth, investment management, and other.
Bank of America has sold its last remaining stake in China Construction Bank, ending an era started eight years ago when big U.S. banks scrambled to invest in China and economic growth was seemingly endless. The stakes in Chinese banks have not delivered the results U.S. banks had hoped for — and stricter international regulations have made the investments less attractive overall. Bank of America was the last major U.S. bank to divest itself of stake in a Chinese peer company.