Only a company that is “tough as nails” survives a recession as great as the one that we went through, I am not going to lie 2008 was tough but Bank of America (NYSE:BAC) got through it, with its lawsuits, mortgage losses, and its merger expenses. Bank of America has shown strength that most companies have not shown. Not only has it gotten rid of most of its lawsuits but it has increased its net income applicable to common shares by about $2 billion. Since that period in time, Bank of America Corp (NYSE:BAC) has grown, and it has become smarter as a financial company. With these reasons and some others listed below, Bank of America Corp (NYSE:BAC) will be able to hit new EPS highs.
Bank of America Corp (NYSE:BAC)’s subsidiaries continue to grow. In fact one of its major subsidiaries Merrill Edge reported an increase of 40% in brokerage assets, which is a very good indicator for future growth. Bank of America also stated that their consumer deposits continue to grow. As you all are aware Bank of America Corp (NYSE:BAC) just reported earnings, and they were golden. Everything continued to show Bank of America’s progress of getting back in the game after the recession of 2008. The only reason Bank of America’s earnings were not higher was because of certain obstacles, such as lawsuit expenses. Lawsuits have taken over Bank of America’s ability to operate as a conglomerate, it just cannot simply work with a bunch of attorney hovering over its head, so now all it needs to do is get rid of pending lawsuits and increase revenue. If Bank of America can carry out these goals it will increase its market share as well as its market capitalization, which would in turn give you, the shareholder, more money. Bank of America has proven this before back in 2009, when it tumbled to about $3.50/share, since that time period Bank of America has nearly quadrupled per share.
With all of this being said Bank of America Corp (NYSE:BAC) will also continue to grow, due to the housing market, the economy itself, and other ripple effect factors. Bank of America has also said that it has put most of its lawsuits behind.
Bank of America has shown phenomenal growth when compared to these companies. Below are some facts that will prove this.
JP Morgan Chase & Co. (NYSE:JPM)
Even though JPMorgan Chase & Co. (NYSE:JPM) is a bigger company than Bank of America, has more potential. JPMorgan Chase & Co. (NYSE:JPM) has had a long history of lawsuits, just like Bank of America; however, Bank of America’s lawsuits are almost over. After the 2008 debacle, Bank of America’s stock price has nearly got up by more than $10, while JPMorgan Chase & Co. (NYSE:JPM) has gone up, but not as much percent wise.
Citigroup Inc. (NYSE:C)
According to the market capitalization of Citigroup Inc. (NYSE:C), it is as big as Bank of America. As true as this may sound, this is not the case. Even though Citigroup Inc. (NYSE:C)’s fundamentals are stronger, Bank of America is stronger as a company. A bunch of reasons contribute to its fundamentals not being as good, and example of this may be lawsuit troubles. All Bank of America needs is a gentle push, and then it would surpass all of these companies.