Is Bank of America Stock a Buy?
Bank of America (NYSE: BAC) was among the top performing bank stocks in the second half of 2022, returning 6.4% over the last two quarters of the year. Overall, the nation's second-largest bank was down about 26% in 2022.
As a new year begins, investors may be wondering if the bank stock's momentum from the second half of the year will continue this year amid much economic and market uncertainty. Here are several reasons Bank of America remains a buy in 2023.
Bank of America, like many banks, got a boost in 2022 as the Federal Reserve started aggressively hiking interest rates. After raising rates 25 (0.25%) basis points in March and 50 basis points in May, the Fed increased rates by 75 basis points at each of the four meetings that followed. It ended the year with a 50-point rate hike, which puts the federal funds rate that banks charge each other for overnight loans in the 4.25%-to-4.5% range.
Source Fool.com
