Bank of America Shares Leap, but Can They Sustain Their Bull Run?
In a stunning market turnaround, Bank of America (BAC) has seen its stock price surge by 52% since late October 2023, a performance that has significantly outstripped the S&P 500’s 28% rise. This impressive rally comes despite the backdrop of record profits amidst sharply higher interest rates. Yet, even with these gains, BAC's financials reveal some areas of concern. The company's earnings per share have been on a downward trend for the past two years, with net income experiencing a slide in both 2022 and 2023. Furthermore, there's been a notable increase in net charge-offs for both consumer and commercial loans, nearly doubling from the previous year. As delinquencies and charge-off rates escalate across US banks, the financial sector finds itself at a pivotal juncture.
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