Why Bank of America Shares Are Soaring
The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.
Bank of America got pretty good news from the recent Federal Reserve stress tests. Its stressed-out numbers under an economic-meltdown scenario were acceptable and in line with its peers. And unlike Citigroup, it was smart enough not to try to request a boost in dividends or share buybacks, as it has tried in the past. This news isn't earth-shattering, but because B of A has been so beaten down, its shares respond extra favorably to good news. Anand explains.
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At the time this article was published Anand Chokkavelu, CFA, and The Motley Fool owns shares of Bank of America and Citigroup. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.