Three reasons to own the Bank of America stock right now
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Jun 7, 2022
MarketRebellion.com’s Jon Najarian also likes BAC on higher credit card spending.
Shares of the Wall Street bank are down more than 25% versus their year-to-date high.
Bank of America Corp (NYSE: BAC) has been a disappointment for shareholders this year, but Hightower’s Stephanie Link continues to keep it on her portfolio.
Link’s reasons to own Bank of America stock
BAC is a good pick here because it’s sensitive to the rising rates. Link, however, has other reasons as well to remain constructive on the stock. This afternoon on CNBC’s “Halftime Report”, she said:
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Bank of America has also done such a good job in terms of technology spent over the last decade. And their costs were guided to be flat this year while everybody else’s costs were going sky high. So, I like this one.
In April, the multinational investment bank reported market-beating results for its fiscal Q1 and forecast continued strength as rates keep moving up.
Jon Najarian likes BAC on credit card spending
MarketRebellion.com Jon Najarian is rather dovish on the bank stocks at large. Interestingly, however, even he likes Bank of America better than its peers. Explaining why on the same CNBC interview, he said:
Credit card spending is up 13% year-over-year. I think that will continue. As consumer draw down on their savings, they’ll be forced to use credit cards more and more. And that’s an area that BofA really does bank money on.
A day earlier, the Charlotte-headquartered bank reported data that showed continued growth in consumer spending. Wall Street, on average, sees a 35% upside in the stock from here.
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