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Why This Expert Thinks Bank Of America Is Still A Buy At $18

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Nate Tobik was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

CompleteBankData.com Founder Nate Tobik said that Bank of America Corp (NYSE: BAC) is "still an attractive buy" at $18. He noted that the stock has seen a pattern of selling heading into earnings that cause "dramatic drops" in price - as though investors are scared. Then, when earnings beat expectations, the price "shoots right back up again."

The stock is moving higher in Wednesday's trading, hitting a new 52-week high in the process. Bank of America gained 1.9 percent to $18.42.

Tobik said that Bank of America could provide a good opportunity for traders in the wake of earnings. Tobik also indicated that he sees the same pattern in the KBW National Bank Index (INDEXNASDAQ: BKX), which hit a 52-week high of $80.14 on Tuesday.

In addition to Bank of America, Tobik argued that JPMorgan Chase & Co. (NYSE: JPM) was a "decent stock to hold on to for a while," as the price continues to push above previous resistance points. The bank, he pointed out, is "doing very well."

Year-to-date, JPMorgan has outperformed Bank of America, gaining 11.2 percent versus 2 percent gains in BofA. Much of this is attributed to the fact that Bank of America lagged from February through April. In the past three months, BofA has outperformed.

 

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Posted-In: Bank of America Benzinga #PreMarket Prep CompleteBankData.com Nate TobikLong Ideas Exclusives Trading Ideas