With the United States’ mortgage issues settling, home sales increasing and the ‘doom and gloom’ atmosphere no longer looming over the US economy, right now may be a very good time to buy shares of an American bank. This blog is going to take a look at three American banks that provide a definite investing opportunity. It’s based off a number of blogs that have been written lately about the same subject. If you are looking for an investment opportunity this blog may help you to decide whether one of these three banks is a good idea. Enjoy.
The first bank on our list is Bank of America (NYSE: BAC). BoA is the one bank that appears ready for the most growth, mostly due to the fact that, while many of its peers have experienced recovery, BoA has not. As their stock is still a far sight from their $40 per share pre-recession price, BoA seems to be an example of the ‘too big to fail’ company. Seeing as their price has nearly doubled in the past year, that seems to be exactly what they’re doing. (Not failing.)
One of the worst problems that Bank of America has is that perception among American consumers about the company is quite poor. In order to counter this perception they have developed a new advertising campaign called “ Express Your Thanks”. What this campaign aims to do is generate money for wounded service members returning from overseas, to the tune of $1 million. With this effort towards winning back their investors now might be the best time to get in before the masses start to come around and drive their price through the roof.
Next on our list is Citigroup (NYSE: C) Over the last year Citigroup has been making a comeback with gains of approximately 100%. They haven’t surpassed their pre-recession price however, something that indicates that there is plenty of room for growth. Indeed, their price at $50 per share is ridiculously low compared to their $550 per share pre-recession price. Citibank also continues to beat their earnings estimates, something that almost always results in a price increase. With their shares very undervalued, and the housing sector continuing to heat up, experts predict big gains for Citigroup.
Last up is JPMorgan Chase (NYSE: JPM). They showed quite a bit of strength making steady acquisitions during the recession and, in the last year, the stock has nearly doubled. The biggest problem that J.P. Morgan Chase has is that they are now involved in many lawsuits due to some of the takeover acquisitions that they made. Since many of those deals were subprime related, lawsuits could result in the loss of billions of dollars when residual mortgage-backed securities are repurchased.
The question of which bank to choose is going to be different for every investor. From what we’ve been reading, most experts are looking at BoA because it’s going to be settling its mortgage issues very soon. With the fact that their stock appears set to advance rapidly and that the management at Bank of America is very strong, they may be the best bet. Experts are also saying that investors who want to take advantage of the negative feelings about Bank of America should do so now before others start adding them back into their portfolios again.
At the end of the day the one fact sticks out the most is that Bank of America’s stock doubled in 2012. Is this something that makes it a definite, 100% lock? No, because there’s no such thing. That being said, if you do your research and conclude that investing in Bank of America right now is a good idea, you certainly won’t be alone.