DB1 – Bank of America Corporation
Liberty University
BUSI 530-D07
Delayna Beardsley
Bank of America Corporation is one of the largest multinational financial institution that
provides banking services to all types of individuals and businesses. They are one of the leading
banks in the industry and have been for many years. The banking industry has mostly recovered
from the financial crisis in 2007-2008 (Badenhausen, 2017). While there are still banks that are
failing, Bank of America is continually growing stronger and will be for years to come.
The banking market is a very fickle industry that depends highly on outside influences.
The banking stocks have been on a rise since the November presidential election and investors
are expecting interest rates to rise due to President Trump easing regulations on the sector
(Badenhausen, 2017). This propels bank profits and growth to an unimaginable amount.
NetAdvantage also gives a positive outlook for the banking industry over the next 12 months
(Sector Scorecard-Industry Information). Bank of America has had a 6.7% growth in revenue
over the last 12 months and has not had a loss in the last five years (NetAdvantage). Forbes
Magazine considers it one of the best banks in the world (Market Cap, 2016).
Bank of America is a well-capitalized company and have reported steady increases in
earnings per share and revenue. Over the last year, investing with Bank of America has returned
70%, which is out performing many financial stocks and major stock markets by a wide margin
(Achilles Research, 2017). Returns will continue to rise until the market settles from the election.
Due to the factors listed above, investing into Bank of America is a good idea. They have a
record of continued growth even during tough financial times in the market. They are ranked
highly in many different categories in their industry, they are #68 for the World's Most Valuable
Brands and #37 in Market Value (Market Cap, 2016). They have continued to prove themselves
as a power house over the years.
Market Cap. (2016). #11 Bank of America. Retrieved from
https://www.forbes.com/companies/bank-of-america/.
Badenhausen, K. (2017). America's Best Banks 2017. Retrieved from
https://www.forbes.com/sites/kurtbadenhausen/2017/01/10/americas-best-banks-
2017/#764177fb128f.
References
Achilles Research. (2017). Bank Of America: The Quiet Before The Storm?. Retrieved from
https://seekingalpha.com/article/4057984-bank-america-quiet-storm.
