As the big banks kicked off earnings season, Bank of America (NYSE: BAC) was among the bellwethers and a big miss could have signaled trouble for an already recession-wary market. Whether BoA's second-quarter 2022 results were a beat or a miss remained firmly in the eye of the beholder, though, as the company's management unsurprisingly gave the data a positive spin while the skeptics had ample fodder for their glass-half-empty conclusions.

At the same time, dip buyers might salivate at the chance to buy Back of America shares at a seemingly attractive valuation. Caution may be warranted, however, as BoA's bull case is predicated on recent central-bank policy -- which, history will show, is subject to change without notice.

So, is Bank of America stock a buy as the price pulls back to early 2021 levels, and as BoA's trailing-12-month price-to-earnings ratio looks enticing at 10?  Bank of America's second-quarter results ought to help investors decide whether to buy the dip or pass and wait.

Continue reading

Source Fool.com