Is Bank of America Stock a Buy?
Bank of America (NYSE: BAC) is one of the largest holdings in the portfolio of the legendary investor Warren Buffett. Given Buffett's excellent track record as an investor, one might be inclined to follow his lead and purchase shares of the financial institution, especially considering Bank of America's stock is up by 96% over the past five years, which compares favorably to the S&P 500's 55% return over the same period.
However, before making any definitive decisions, it would be helpful to take a closer look at Bank of America's business and figure out whether its shares are worth buying today.
Bank of America is one of the largest banks in the U.S. by almost any metric, including assets, market cap, and deposits. The company's biggest segment by revenue is its consumer banking business -- which provides everyday banking needs to individuals and small businesses. Bank of America's consumer banking segment performed well during the third quarter of 2019; its revenue increase by 3%, while its net income grew by 5%. Further, consumer banking deposits grew by 3%, while loans grew by 7%.
Source Fool.com
