Throughout the year, we have consistently argued that Bank of America Corp. (NYSE: BAC) is a sound company with solid fundamentals that support the outlook for significant long-term rallies over the next several quarters. A strengthening economy and a hawkish interest rate outlook suggest we are in a macro environment that is conducive to improving revenue performances that surpass analyst expectations. Recent market activity, however, indicates that the market at large remains unconvinced of these possibilities. This has resulted in a period of indecision and sideways price moves over the last three months. But until we see material changes in the bank’s underlying earnings prospects, we maintain our bullish stance and argue that the recent sluggishness means that investors still have a chance to gain exposure to the stock. In other words, recent moves in BAC stock prices should be viewed as another opportunity to buy and not as a basis for arguments that Bank of America is gearing up for a corrective downtrend.
BAC Stock Chart: Google Finance