Bank Of America Stock Probability of Future Stock Price Finishing Under 47.51
| BAC Stock | USD 45.75 0.16 0.35% |
Closest to current price Bank long CALL Option Payoff at Expiration
Bank |
Bank of America Target Price Odds to finish below 47.51
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 Price | Horizon | Target Price | Odds to stay under $ 47.51 after 90 days |
| 45.75 | 90 days | 47.51 | under 95 |
Based on a normal probability distribution, the odds of Bank of America to stay under $ 47.51 after 90 days from now is under 95 (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 its current price of $ 45.75 and $ 47.51 at the end of the 90-day period is about 9.46 .
Considering the 90-day investment horizon the stock has the beta coefficient of 1.5 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 0.0625, implying that it can generate a 0.0625 percent excess return over Dow Jones Industrial 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.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 Dow Jones | 0.06 | |
β | Beta against Dow Jones | 1.50 | |
σ | Overall volatility | 3.03 | |
Ir | Information ratio | 0.08 |
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 63.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from investing.com: Bank of America sells 865 in Nuveen municipal fund stock |
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 Outstanding | 8.1 B | |
| Cash And Short Term Investments | 327.5 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 63.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from investing.com: Bank of America sells 865 in Nuveen municipal fund 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.You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Is Diversified Banks space 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 (0.10) | Dividend Share 0.98 | Earnings Share 2.76 | Revenue Per Share 11.95 | Quarterly Revenue Growth (0.01) |
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.