Bank of America Weathers Cuts To Estimates and 2 Hot Stocks To Watch
Bank of America (NYSE:BAC) shares are up a hair over .7 percent at 12:45 PM EST, even following Goldman Sachs’ cut of its earnings forecasts by 15 percent on Tuesday. In explanation, Goldman said that banks that gain more than 10 percent in Q1 usually give back nearly all those profits in Q2, when future earnings estimates begin falling. “Lackluster fundamentals could lead to a negative EPS revision cycle (which has been the trend the past few years),” Goldman said.
Walter Pritchards of Citi wrote a bullish note on shares of Microsoft (NASDAQ:MSFT), and reiterated his Buy rating on the company, which helped offset a downgrade to Hold from BCG. Citing weaker PC demand, Pritchard also cut his estimates by $300 million, but added that he expects strong performance from the Server & Tools program as well as a refreshed product lineup to help offset the declining PC sales.
Early users of Intel’s (NASDAQ:INTC) web-based TV service say that the product may indeed be as revolutionary as speculations have claimed, and have said it is “a significant advance over any existing cable or satellite platform,” potentially putting a significant oil slick on the future plans of cable providers.