Bank of America (BAC -1.29%) was among the top performing bank stocks in the second half of 2022, returning 6.4% over the last two quarters of the year. Overall, the nation's second-largest bank was down about 26% in 2022.
As a new year begins, investors may be wondering if the bank stock's momentum from the second half of the year will continue this year amid much economic and market uncertainty. Here are several reasons Bank of America remains a buy in 2023.
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After a rough year in 2022, bank stocks are now navigating a fresh minefield in 2023. Rising interest rates have triggered a sharp decline in long-term bond prices, resulting in massive losses for banks holding them on their balance sheets. As a result, U.S. regional banks like Silicon Valley Bank parent SVB Financial Group (ticker: SIVB) and Signature Bank (SNBY) recently became the two largest U.S. bank failures since the 2008 financial crisis. Cryptocurrency lender Silvergate Capital Corp. (SI) has also announced it is liquidating its assets and shutting down after 2022's \"crypto winter\" prompted an exodus of customer funds. Investors are understandably concerned over potential for contagion within the banking industry, but the sharp sell-off in bank stocks could also prove to be an excellent long-term buying opportunity in high-quality banks. Here are eight of the best bank stocks to buy in 2023, according to Bank of America analysts.
Barchart Opinions add market-timing information by calculating and interpreting signal strength and direction. Unique to Barchart.com, Opinions analyzes a stock or commodity using 13 popular analytics in short-, medium- and long-term periods. Results are interpreted as buy, sell or hold signals, each with numeric ratings and summarized with an overall percentage buy or sell rating. For example, a price above its moving average is generally considered an upward trend or a buy.
When the market goes up because of positive news about the economy, Bank of America stock shoots up past the stocks of other big banks. When traders get worried about Greek debt, Bank of America takes the biggest plunge.
Instead, Bank of America is the stock of the moment for high-frequency trading, the supercomputer-driven buying and selling that barely existed a few years ago and now accounts for as much as two-thirds of U.S. trading.
Those pennies add up over tens of millions of shares a day to produce big gains. And when computers rush to buy or sell a stock like Bank of America, it can result in accelerated moves in the stock price. Buying leads to more buying, selling to more selling.
The stock traded as high as $15.31 last year. Then investors, worried about how deep the bank's mortgage problems might be, drove it below $10 in July. High-frequency traders pounced, and Bank of America's volume exploded. It was 147 million shares last summer. On Thursday, 477 million shares changed hands.
Bank of America's chief financial officer, Bruce Thompson, told reporters in January that the bank isn't likely to buy back stock this year. So for now, those human investors will have to buckle up for the ride.
During the summer of 1951, it was apparent to the three Wilson brothers that there was considerable valuable timber on the land owned by the company and they were anxious to buy Cox out at a low figure without letting him know the company's prospects. Arthur, who is now deceased and whose interests in this action are represented by respondent Bank of America National Trust and Savings Association as executor of his will, was then in Europe. Alex was the active member of the family so far as Crane Valley was concerned, William being a school superintendent who left the conduct of the company's affairs to Alex. Cox finally indicated that he was willing to sell his stock for $3,500 and, as the court found, Arthur purchased the stock for $3,500 cash. The certificate, standing in his name, was found in his safe deposit box after his death, which occurred on August 11, 1956.
In Davies v. Acware Plastics, 116 Cal. App. 2d 798 [254 P.2d 663], the facts were very similar. The buyer thought he was buying stock from the corporation, but in fact bought from one of the stockholders. The buyer's check was payable to the corporation, and the selling stockholder authorized its payment to the corporation as a loan. It was held that no permit was required, the sale being within Corporations Code, section 25152, clause (a). The same is true here. Castle v. Acme Ice Cream Co., 101 Cal. App. 94 [281 P. 396], heavily relied upon by Crane Valley, is clearly not in point. There, the court below found, upon sufficient evidence, that the corporation acquired the stock from shareholder A and then reissued it [182 Cal. App. 2d 174] to stockholder B. Under those circumstances, a permit was required, and B could sue to recover the consideration he gave. Here the court found, and upon sufficient evidence, that the transaction was a purchase from Cox by Arthur, not by Crane Valley, and involved no issuance of stock by Crane Valley.
 Moreover, even if a permit were required, Crane Valley would be in no position to assert that the stock is void. The Corporate Securities Act was intended to protect those to whom a corporation issues and sells its securities. It would be a perversion of the act to permit the corporation to take advantage of its own wrong, particularly where, as here, the venture has proved successful. All of the cases agree upon this proposition. (See, for example, Eberhard v. Pacific Southwest L. & M. Corp., 215 Cal. 226 [9 P.2d 302]; Security-First National Bank v. J. G. Ruddle Properties, Inc., 218 Cal. 435 [23 P.2d 1016]; Domestic & Foreign Petr. Co., Ltd. v. Long, 4 Cal. 2d 547, 558-559 [51 P.2d 73].) \"No one can take advantage of his own wrong.\" (Civ. Code, 3517.)
The PIF is banking on its sense of timing to deliver returns: the stock prices of these large, well-known and highly successful companies took a battering in the early days of the Covid-19 crisis, like almost every other stock in the world. By making its move when valuations were low, the cash-rich PIF should be able to show a healthy return, purely through its sense of timing.
There are all kinds of details that have been put into these three parts of the amendment to make them work. Actually, there is nothing in this amendment that is very far outside a core set of issues being considered. Modern bank holding companies do a lot of things. They do wealth management. They do broker dealers in securities and other financial products. They do market making where they help bring together this group that wants to buy and this group that wants to sell. They make loans to power up our families and our small businesses. And they do insurance. All those functions continue in our bill. 781b155fdc