The Year's Leading Dow Stock
Bank of America is up 55% this year and leads all Dow gainers.
Why the 55% spike? Well, unlike fellow megabank JPMorgan Chase, which is dealing with its "London whale" snafu, not much has changed for Bank of America. It's still working through the litigation and toxic loans it was saddled with after its Countrywide purchase. And there's still a real banking business underneath the problems.
The price spike is largely due to where it started the year. Last year was a rough one for B of A. In fact, it led the Dow losers in 2011 and saw its stock price briefly fall below $5 a share. Now between $8 and $9 a share, Bank of America is still valued at less than its book value.
Fool analyst Anand Chokkavelu still thinks there's upside for new Bank of America investors despite the 55% gain, but only for those who can handle the risk.
To learn more about the most-talked-about bank out there, check out our in-depth company report on Bank of America. The report details Bank of America's prospects, including three reasons to buy and three reasons to sell. Just click here to get access.
The article The Year's Leading Dow Stock originally appeared on Fool.com.Anand Chokkavelu owns shares of Bank of America and JPMorgan Chase, long-dated options in Bank of America, and warrants in JPMorgan Chase. Andrew Tonner has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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