© Reuters. Should You Buy the Dip in Bank of America Stock?
Bank stocks have been under pressure due to the flattening of the yield curve and underwhelming growth in loan demand. However, they remain solid long-term buys. Should you buy Bank of America (NYSE:) on the dip?.Bank of America (BAC) is one of the country’s largest banks and offers investors exposure to Main Street and Wall Street. The company has posted strong results over the past year especially as default rates have been lower than expected which is leading to the company taking off some of its loan loss reserves.
While BAC remains 21% higher over the past six months, it has slid 3% in the past month. The company delivered strong earnings but underwhelmed in terms of its outlook due to weak loan demand and compression in the spread between short and long-term rates.
Can BAC bounce back after its recent slide? Let’s find out if this multinational investment bank and financial services specialist is worthy of your investing dollars at its current price.
BAC Points of Note
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