At Its Highest Price in a Decade, Can Bank of America Go Higher in 2022?
What a year it's been for Bank of America (NYSE: BAC). The stock price is up 47% this year and is more than double the lows it hit at the very beginning of the pandemic. At about $44 per share, the stock is at its highest level in more than a decade. Warren Buffett knew what he was doing when he plowed more than $2 billion into the stock in mid-2020. With a premium valuation, can America's second-largest bank by assets go higher in 2022? Let's take a look.
This year's earnings at most banks were lumpy, with billions in reserves being released after previously being built up to manage loan losses that didn't materialize. Banks also generated record revenue for investment banking and sales and trading, but then saw slacking loan growth in the extremely low-rate environment.
Image source: Bank of America.
Source Fool.com
