Bank of America (BAC) looks to continue higher as its operations improve alongside an attractive valuation multiple. BAC is emerging from a long-term bottoming formation, with upside momentum on its side. BAC is positioned to benefit from an interest rates rise and an improving U.S. economy. Its valuation multiple also is lower than its peers, signaling it could outperform in coming years.
Price Action
Since reaching record low levels during the financial crisis, BAC has seen its price action form a bottom in the last decade. A significant breakout above $20 was achieved late in 2016 following the U.S. Presidential Election. Investor bid up BAC, as well as other banks during that time, as they expected the new political agenda to favor both accelerated U.S. growth as well as rising interest rates.
