The BAC stock price provides useful data for identifying historical patterns and run-ups before earnings. Using historical data, you can model price moves around earnings, thereby generating profit opportunities. The information provided by BAC stock prices can also be used for market analysis. This article explains some of the useful information provided by BAC stock prices.
BAC stock price typically moves lower immediately after earnings. In the past, 7 out of 12 times, the stock has fallen on the day after earnings. The BAC earnings gap, or the earnings gap, is a way to estimate the impact of earnings announcements on BAC stock prices. The earnings gap is calculated by dividing the previous close price of the stock by the opening price on the day following earnings.
Bank Of America is a leading provider of financial services to individuals, businesses, institutions, governments, and institutional investors. With over 67 million clients, it is the second-largest US bank and eighth largest bank in the world. It manages about 10% of all US bank deposits. Warren Buffett’s fund holds a $45 billion stake in BAC. The bank is well-positioned to benefit from rising interest rates.