Summary
BoA has dipped down to $28.50 despite impressive earnings growth due to improving operating leverage.
The large bank continues to generate NII growth in the rising rate environment.
The large capital returns approaching 9% of the current market cap provide downside protection.
As with most large bank stocks, the market is making it easy to remain bullish on this sector. The financial crisis ended a decade ago and stocks like Bank of America (BAC) continue trading at depressed levels. Buying the stock below $30 remains a gift as the company continues to generate operating leverage gains.
Image Source: BoA website
