Berkshire Hathaway CEO Warren Buffett continues to bank on Bank of America (BAC) stock, one of his top holdings. And on Wednesday, the Relative Strength (RS) Rating for Bank of America got a significant boost as it rose to 83, up from 79 the day before.
The new 83 RS Rating puts Bank of America stock in the top 17% of all stock in terms of price performance over the past year. Market research has shown that stocks that go on to make the biggest gains often have an RS Rating of at least 80 as they begin their biggest runs.
Bank Of America’s Other Key Ratings
Interest rates are rising, a trend that generally lifts bank stocks. Among its other major ratings, BofA has an 89 EPS Rating, of 99. Additionally, it has an 83 IBD Composite Rating.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
See How IBD Helps You Make More Money In Stocks
Bank of America stock was down 2.2% to 43.20 in Wednesday afternoon trading amid overall market consolidation. BofA is trying to complete a consolidation with a 50.21 entry. See if it can clear the breakout price in volume at least 40% higher than normal.
The company posted robust 39% earnings growth last quarter, to 82 cents per share. The prior three stanzas it reported 115%, 178% and 67% EPS growth. Revenue last quarter rose 9% to $23.2 billion. Although 9% growth may not seem like a lot, for a company with a run rate north of $90 billion that’s decent growth. Bank of America plans to announce first quarter results on April 18 before the market opens.
Bank of America holds the No. 3 rank among its peers in the Banks-Money Centers industry group. Morgan Stanley (MS) and Bank of Montreal (BMO) are also among the group’s highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD’s unique RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that shows how a stock’s price performance over the trailing 52 weeks matches up against that of all other stocks.
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Source: https://www.investors.com/news/stock-upgrades-bank-of-america-shows-rising-relative-strength-3/?src=A00220&yptr=yahoo