Bank of America
Most of the analysts providing recommendations on Bank of America (BAC) recommended a “buy.” Bank of America will likely post higher net interest income in 2019 due to growth in loans and deposits. The company’s operating leverage and share repurchases are expected to drive its EPS in 2019.
Among the 31 analysts tracking Bank of America, 18 recommended a “buy,” while 13 recommended a “hold.” Analysts have a consensus target price of $33.33, which implies a potential upside of 11.5% based on its closing price of $29.88 on April 16.
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Bank of America stock trades at a forward PE ratio of 10.1x, which is ~14% lower than its historical average multiple of 11.7x. The bank’s low valuation and expected growth of 9% and 10% in its EPS in 2019 and 2020, respectively, will likely to support its stock in the near term.
In comparison, Citigroup, Goldman Sachs, and Wells Fargo stock are trading at a lower valuation multiple. Citigroup, Goldman Sachs, and Wells Fargo shares are trading at a forward PE ratio of 8.7x, 8.2x, and 10.x, respectively. JPMorgan Chase stock trades at a forward PE ratio of 11.0x.
Procter & Gamble (PG) impressed with its underlying sales growth rate in the first half of fiscal 2019.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.