Tomahawk, WI 01/10/2014 (BasicsMedia) – Maybe the title of this article should be “Bank of America Corp (NYSE:BAC) is a cooler bet”. Well, we are looking at the financial sector where most players if not all are still trying to recover from the financial downturn of 2008. Note that some financial institutions actually went to the dogs because of the financial crisis about four years ago.

Bank of America Corp (NYSE:BAC) is one of the larger financial institutions in the U.S. that are still struggling to recover from the recession impact. But put next to peers, the bank looks more promising and I believe many investors have not known what makes this stock a good bet at this point.

We are looking at a company that is still offering penny dividend, a fact that makes it a no-go-zone for income investors. However, we are also looking at a company that has shored up its balance sheet with wonderful fundamental improvements. What’s more about BAC?

The bank has risen more than 38.9 percent over the past 12 months. This makes it the top performer among its peers in the top-four banking gorillas in the U.S. Analysts are expecting the bank to post earning of about $0.27 on revenue of $21.28 billion for the fiscal 2013 fourth quarter. A year ago the company earned $0.03 on revenue of $21.66. By most measure, the bank has done a lot in its fundamentals and it is easy to why how the expected big earning leap over a year ago is coming about.

Compare peers

How is Bank of America Corp (NYSE:BAC) standing against peers so far. Wells Fargo & Co. (NYSE:WFC)’s stock has gained 31.4 percent over the past 12 months. The company is expected to post earnings of $0.99 per share on revenue of $20.67 billion for fiscal 2013 fourth quarter. A year ago the financial institution with strong presence in mortgage business earned $0.91 per share on revenue of $21.95 billion; note that expected drop in revenue over a year ago.

Exit WFC, enter JPMorgan Chase & Co. (NYSE:JPM). This is the largest lender in the U.S. with assets in excess of $2 trillion. The stock is up 38 percent over the past 12 months. Its fiscal 2013 fourth quarter is expected to yield $1.32 earning per share on revenue of $23.81 billion. A year ago the bank earned $1.39 per share on revenue of $24.38 billion. Looking at the figures, the company sits of potential revenue and earnings decline from the previous year.

What about Citigroup Inc. (NYSE:C)? The stock is up approximately 28.6 percent over the past 12 months. Citi is expected to earn $1.02 for in fiscal 2013 fourth quarter on revenue of $18.42 billion. The bank earned $0.38 on revenue of $18.66 billion in the year-ago period. Looking at these figures reveal that Citi is sitting on a potential revenue decline for its Q4.


It may not seem much that Bank of America Corp (NYSE:BAC) is having a narrow lead in stock price-gain over the past 12 months. But considering that the company has faced perhaps the biggest challenge than its peers over the past one year reveals that it is operating on solid grounds and that when things return to normal, it is poised to outperform the peers by wider margins.

Bank of America Corp (NYSE:BAC) has risen it still has enough room to rise even further. There is opportunity to buy the stock when it is still tradingly cheaply. It is going to climb sharp on strong fundamentals and once it starts offering meaningful dividend.

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