Blog Introduction: Bank of America Corporation (NYSE: BAC) stock has been on a tear in 2020, up over 60% since the start of the year. The share price is now close to its 52-week high. So, what’s driving the strong performance? And more importantly, is the stock still a good buy at current levels? Let’s take a closer look.
Blog Body:
Drivers of BAC Stock Performance in 2020
There are a few factors that have contributed to Bank of America’s strong share price performance this year. Firstly, the U.S. Federal Reserve has kept interest rates at near-zero levels, which has helped to boost lending activity and profits for banks. Secondly, BofA has benefited from increased consumer confidence and spending, as well as a resurgence in the U.S. housing market. Lastly, the bank’s expense-cutting initiatives are starting to bear fruit and translate into higher profitability.
All things considered, it’s not surprising that BAC stock has performed so well this year. That said, with the share price now close to its 52-week high, some investors may be wondering if the stock is still a good buy at current levels.
BCA Stock – Is It Still A Buy?
Bank of America is one of the largest banks in the world and is well-positioned to benefit from continued economic expansion in the United States. Moreover, with interest rates expected to remain low for the foreseeable future, BofA should be able to continue growing its profits at a healthy clip. As such, I believe that the stock is still a good buy at current levels and believe that there is still upside potential for further gains in 2020 and beyond.
Disclosure: I am/we are long BAC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.