Bank Of America Stock Probability of Future Stock Price Finishing Over 33.69

BAC Stock  USD 37.81  0.72  1.94%   
Bank of America's implied volatility is one of the determining factors in the pricing options written on Bank Of America. Implied volatility approximates the future value of Bank of America based on the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Bank Of America over a specific time period. For example, 2024-03-28 CALL at $38.0 is a CALL option contract on Bank of America's common stock with a strick price of 38.0 expiring on 2024-03-28. The contract was last traded on 2024-03-27 at 15:59:38 for $0.09 and, as of today, has 0 days remaining before the expiration. The option is currently trading at a bid price of $0.09, and an ask price of $0.1. The implied volatility as of the 28th of March is 21.28. View All Bank options

Closest to current price Bank long CALL Option Payoff at Expiration

Bank of America's future price is the expected price of Bank of America instrument. It is based on its current growth rate as well as the projected cash flow expected by the investors. This tool provides a mechanism to make assumptions about the upside potential and downside risk of Bank Of America performance during a given time horizon utilizing its historical volatility. Check out Bank of America Backtesting, Bank of America Valuation, Bank of America Correlation, Bank of America Hype Analysis, Bank of America Volatility, Bank of America History as well as Bank of America Performance.
For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.
  
At present, Bank of America's Price Book Value Ratio is projected to increase slightly based on the last few years of reporting. The current year's Price To Book Ratio is expected to grow to 1.53, whereas Price To Sales Ratio is forecasted to decline to 2.18. Please specify Bank of America's target price for which you would like Bank of America odds to be computed.

Bank of America Target Price Odds to finish over 33.69

The tendency of Bank Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
Current PriceHorizonTarget PriceOdds to stay above $ 33.69  in 90 days
 37.81 90 days 33.69 
about 59.48
Based on a normal probability distribution, the odds of Bank of America to stay above $ 33.69  in 90 days from now is about 59.48 (This Bank Of America probability density function shows the probability of Bank Stock to fall within a particular range of prices over 90 days) . Probability of Bank Of America price to stay between $ 33.69  and its current price of $37.81 at the end of the 90-day period is about 58.87 .
Considering the 90-day investment horizon the stock has the beta coefficient of 1.27 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Bank of America will likely underperform. Additionally Bank Of America has an alpha of 0.0473, implying that it can generate a 0.0473 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
   Bank of America Price Density   
       Price  

Predictive Modules for Bank of America

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Bank Of America. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Bank of America's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
36.5837.8439.10
Details
Intrinsic
Valuation
LowRealHigh
32.9034.1641.59
Details
Naive
Forecast
LowNextHigh
36.1837.4438.69
Details
24 Analysts
Consensus
LowTargetHigh
29.1832.0735.60
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Bank of America. Your research has to be compared to or analyzed against Bank of America's peers to derive any actionable benefits. When done correctly, Bank of America's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Bank Of America.

Bank of America Risk Indicators

For the most part, the last 10-20 years have been a very volatile time for the stock market. Bank of America is not an exception. The market had few large corrections towards the Bank of America's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Bank Of America, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Bank of America within the framework of very fundamental risk indicators.
α
Alpha over NYSE Composite
0.05
β
Beta against NYSE Composite1.27
σ
Overall volatility
1.50
Ir
Information ratio 0.07

Bank of America Alerts and Suggestions

In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Bank of America for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Bank Of America can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.
About 59.0% of the company shares are held by institutions such as insurance companies
Latest headline from finance.yahoo.com: DraftKings stock analysts revamp price targets ahead of NCAA Final Four

Bank of America Price Density Drivers

Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Bank Stock often depends not only on the future outlook of the current and potential Bank of America's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Bank of America's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding8.1 B
Cash And Short Term Investments-27.9 B

Bank of America Technical Analysis

Bank of America's future price can be derived by breaking down and analyzing its technical indicators over time. Bank Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Bank Of America. In general, you should focus on analyzing Bank Stock price patterns and their correlations with different microeconomic environments and drivers.

Bank of America Predictive Forecast Models

Bank of America's time-series forecasting models is one of many Bank of America's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Bank of America's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.

Things to note about Bank Of America

Checking the ongoing alerts about Bank of America for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Bank Of America help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
About 59.0% of the company shares are held by institutions such as insurance companies
Latest headline from finance.yahoo.com: DraftKings stock analysts revamp price targets ahead of NCAA Final Four
When determining whether Bank Of America offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Bank of America's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Bank Of America Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Bank Of America Stock:
Check out Bank of America Backtesting, Bank of America Valuation, Bank of America Correlation, Bank of America Hype Analysis, Bank of America Volatility, Bank of America History as well as Bank of America Performance.
For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.
Note that the Bank Of America information on this page should be used as a complementary analysis to other Bank of America's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Complementary Tools for Bank Stock analysis

When running Bank of America's price analysis, check to measure Bank of America's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bank of America is operating at the current time. Most of Bank of America's value examination focuses on studying past and present price action to predict the probability of Bank of America's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bank of America's price. Additionally, you may evaluate how the addition of Bank of America to your portfolios can decrease your overall portfolio volatility.
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Is Bank of America's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bank of America. If investors know Bank will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bank of America listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.61)
Dividend Share
0.92
Earnings Share
3.08
Revenue Per Share
11.731
Quarterly Revenue Growth
(0.11)
The market value of Bank Of America is measured differently than its book value, which is the value of Bank that is recorded on the company's balance sheet. Investors also form their own opinion of Bank of America's value that differs from its market value or its book value, called intrinsic value, which is Bank of America's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bank of America's market value can be influenced by many factors that don't directly affect Bank of America's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Bank of America's value and its price as these two are different measures arrived at by different means. Investors typically determine if Bank of America is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of America's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.