A Value Opportunity In Bank of America Corporation (BAC), Microsoft Corporation (MSFT) - GV Times

22 analysts out of 31 Wall Street brokerage firms rate Bank of America Corporation (NYSE:BAC) as a Buy, while 0 see it as a Sell. The rest 9 describe it as a Hold. BAC stock traded higher to an intra-day high of $28.62. At one point in session, its potential discontinued and the price was down to lows at $28.11. Analysts have set BAC’s consensus price at $32.93, effectively giving it a 15.99% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $38 (up 33.85% from current price levels). BAC has a 8.3% ROE, lower than the 16.12% average for the industry. The average ROE for the sector is 15.43%.

It is expected that in Mar 2019 quarter BAC will have an EPS of $0.66, while that of Jun 2019 is projected at $0.73. It means that there could be a 6.45% and 15.87% growth in the two quarters respectively. Yearly earnings are expected to rise by 9.2% to about $2.85. As for the coming year, growth will be about 11.93%, lifting earnings to $3.19. RSI after the last trading period was 55.9. BAC recorded a change of 0.53% over the past week and returned 2.31% over the last three months while the BAC stock’s monthly performance revealed a shift in price of 6.93%. The year to date (YTD) performance stands at 15.22%, and the bi-yearly performance specified an activity trend of -7.79% while the shares have moved -8.95% for the past 12 months.

Bank of America Corporation (BAC) currently trades at $28.39, which is lower by -1.08% its previous price. It has a total of 10.03 billion outstanding shares, with an ATR of around 0.58. The company’s stock volume dropped to 47.3 million, worse than 75.03 million that represents its 50-day average. A 5-day increase of about 0.53% in its price means BAC is now 15.22% higher on year-to-date. The shares have surrendered $43429.61 since its $33.05 52-week high price recorded on 12th of March 2018. Overall, it has seen a growth rate of -8.95 over the last 12 months. The current price per share is $5.73 above the 52 week low of $22.66 set on 24th of December 2018.

Bank of America Corporation (NYSE:BAC)’s EPS was $0.7 as reported for the December quarter. In comparison, the same quarter a year ago had an EPS of $0.48. That means that its growth in general now stands at 46%. Therefore, a prediction of $0.63 given by the analysts brought a positive surprise of 11%. BAC Dec 19 quarter revenue was $22.89 billion, compared to $21.59 billion recorded in same quarter last year, giving it a 6% growth rate. The company’s $1.3 billion revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Microsoft Corporation (NASDAQ:MSFT) shares appreciated 0.08% over the last trading period, taking overall 5-day performance up to 1.55%. BAC’s price now at $106.9 is greater than the 50-day average of $104.58. Getting the trading period increased to 200 days, the stock price was seen at $105.34 on average. The general public currently hold control of a total of 7.56 billion shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 7.64 billion. The company’s management holds a total of 0.1%, while institutional investors hold about 74.7% of the remaining shares. BAC share price finished last trade 1.07% above its 20 day simple moving average and its upbeat gap from 200 day simple moving average is 1.54%, while closing the session with 2.14% distance from 50 day simple moving average.

Microsoft Corporation (MSFT) shares were last observed trading -7.99% down since October 03, 2018 when the peak of $116.18 was hit. Last month’s price growth of 1.8% puts MSFT performance for the year now at 5.25%. Consequently, the shares price is trending higher by 22.76%, a 52-week worst price since Mar. 23, 2018. However, it is losing value with -2.43% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $104.99 and $105.94. The immediate resistance area is now $107.57 Williams’s%R (14) for MSFT moved to 15.69 while the stochastic%K points at 82.75.

MSFT’s beta is 1.2; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $4.3 per share from its yearly profit to its outstanding shares. Its last reported revenue is $32.47 billion, which was 12% versus $28.92 billion in the corresponding quarter last year. The EPS for Dec 19 quarter came in at $1.1 compared to $0.96 in the year-ago quarter and had represented 15% year-over-year earnings per share growth. MSFT’s ROA is 13.1%, higher than the 9.29% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 10.48%.

Estimated quarterly earnings for Microsoft Corporation (NASDAQ:MSFT) are around $1 per share in three months through March with $1.18 also the estimate for June quarter of the fiscal year. It means the growth is estimated at 5.26% and 4.42%, respectively. Analysts estimate full-year growth to be 13.66%, the target being $4.41 a share. The upcoming year will see an increase in growth by percentage to 11.79%, more likely to see it hit the $4.93 per share. The firm’s current profit margin over the past 12 months is 28.3%. MSFT ranks higher in comparison to an average of 11.73% for industry peers; while the average for the sector is 12.27%.

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