Bank of America (BAC) Q1 EPS Preview

Bank of America (NYSE: BAC) shares have languished since the Federal Reserve’s dovish monetary policy statement release, which was a letdown to banks hoping for near-term margin expansion. BAC didn’t perform all too well before that either, weighed down by the Fed’s stress test results, which produced a qualified approval for Bank of America’s capital plans. But I suspect something else has been burdening the shares more recently and could make BAC shares irresistible soon. Bank of America disappointed investors when it last reported earnings in January. As a result, there is likely fear afoot today about the upcoming Q1 results, which should be reported on or around April 15. But the risk seems to me to have been built into the shares at this point, considering the positives that lay ahead for BAC. There is also the potential for an upside surprise when the company reports its earnings, which has not been considered by BAC bidders yet. The stock is approaching irresistible value in my view and should be accumulated into and after the report, even if it declines further. See our BAC EPS report preview here.

BAC Peers	03-16-15 to 03-27-15
Bank of America (BAC)	-5.1%
SPDR S&P 500 (NYSE: SPY)	-0.9%
Financial Select Sector SPDR (NYSE: XLF)	-2.8%
Citigroup (NYSE: C)	-5.0%
J.P. Morgan Chase (NYSE: JPM)	-3.7%
Goldman Sachs (NYSE: GS)	-2.0%
Morgan Stanley (NYSE: MS)	-2.5%
Wells Fargo (NYSE: WFC)	-2.9%
U.S. Bancorp (NYSE: USB)	-4.2%

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