Good time to buy more

Article Excerpt

Bank stocks have been among our top performers in the past few years, as an improving economy and low interest rates spurred strong demand for loans. Many banks have used their strong earnings to make acquisitions. Their bigger size gives them access to new clients and economies of scale. (However, a bigger market cap also limits the possibility of a takeover by a domestic or foreign competitor.) Although higher interest rates have slowed their earnings growth and increased the potential for loan write-offs, their prospects remain strong. Cost cuts and growing fee income will also help offset any drop in lending. Investors should aim to own one or two of these four banks. We like all four, but Bank of America is our top choice for new buying. BANK OF AMERICA CORP. $53 (New York symbol BAC; Income Portfolio, Finance sector; Shares outstanding: 4.5 billion; Market cap: $238.5 billion; WSSF Rating: Above average) is the second-largest bank in the United States by assets,…

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