Score 6.7 (out of 10): BANK OF AMERICA earnings tend to move the stock 1.9% higher, just 1 month later

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What’s Going On Here?

BANK OF AMERICA will announce quarterly earnings on January 19. ‘Wall Street’ analysts expect Earnings Per Share (EPS) of 0.765. Based on option market volatilities, the stock could move by 2.18% in either direction, 1 day after the earnings announcement.

Why Now?

After the previous 10 quarterly earnings announcements, the stock returned 1.9% one month after the announcement date. With 70% of those events showing positive returns. Based on our number crunching models, this signal received a high score of 6.7 and is statistically relevant.

What’s This Company About?

BANK OF AMERICA is in the Diversified Banking Inst business. ‘Wall Street’ analysts think the stock price will be worth 1.4% more (average). Ticker symbol: bac US.

What’s My Risk / Reward and Time Horizon?

We found 1 month to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 50.13 (1.9%) has been reached. BANK OF AMERICA traded with last price of 49.18.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

-4% after 2021:Q2, 5.3% after 2021:Q1, 0.6% after 2020:Q4, 4.2% after 2020:Q3, 3.5% after 2020:Q2, 2.9% after 2020:Q1, 0% after 2019:Q4, 10.3% after 2019:Q3, -3.8% after 2019:Q2, 0.3% after 2019:Q1.

Historical Chart:

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Summary:

NameBank of America
ViewUp
Star (1 to 10)6.7
Target+1.9%
Time1 month
Hit Rate70%

Popular Insights:

  • This insight was generated with data available up to January 10, 2022.

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