Summary
- Bank of America released great fourth quarter earnings on Wednesday.
- The bank's Consumer Banking is doing especially great in this strong U.S. economy.
- The bank's shares popped ~8 percent on Wednesday.
- Bank of America's shares again trade for a premium to book value.
- BAC is overbought over the short haul.
Bank of America (BAC) released excellent results for the fourth quarter on Tuesday. Not only were Bank of America's financial results very good, but the Wall Street bank also managed to beat both earnings and revenue estimates. Bank of America's Consumer Banking business is doing exceptionally well right now, and added billions of dollars to the bank's bottom line in the fourth quarter. On the back of the earnings release, Bank of America' shares exploded higher. Should investors chase the stock price, or wait for a consolidation?
Bank of America's shares surged ~8 percent on Wednesday after the banking giant released better-than-expected fourth quarter earnings. The surge comes after a period of consolidation that has seen Bank of America's share price drop from the low $30s to ~$23 as part of the December correction. Today, Bank of America's shares are widely overbought, potentially exposing investors to a correction in the coming weeks and months.
