Bank of America's Stocks Most Likely to Shoot up by December

By Raizel Albano
BAC stock saw its all-time high in eight years last Friday.
BAC stock saw its all-time high in eight years last Friday.  PBS.

With US President-elect Donald Trump coming to the fore as Head of State by January 2017, Bank of America Corporation's stocks (NYSE: BAC) have been on the spike and are expected to rise phenomenally by December. Trump, a long-time businessman and investor, is expected to put into policy generous incentives to the financial industry.

Bank of America currently holds 114 million shares, and is the most actively traded stock in the US. In this early half of the week alone, BAC's stocks have been rising to as much as 1.2%. Last Friday saw BAC's highest stock price at $20.86, the highest in eight years.

BAC saw its stocks skyrocket since the commencement of the US elections, with Donald Trump emerging as the new president. BAC stocks went to as high as 19%.

Instinet analyst Steven Chubak says that this phenomenon is known as the "Goldilocks" scenario for the banking industry, featuring high interest rates, improved economic growth and reduced regulations. The only thing to watch out for, Chubak says, is once investor pricing comes into the picture. Major investor decisions may make or break the skyrocketing prices of BAC stocks. As of last Friday, BAC stocks are at $20.86. Chubak expects the price to get to $25 by the end of the year.

Brian Kleinhanzl, analyst for Keefe, Bruyette & Woods, is on the same note as Chubak saying there is "still room to move" amidst the sudden shoot-up of BAC stocks. He expects BAC stock prices to reach up to $23.00.  

The Trump administration is said to be on the side of financial institutions seeing their promise for US growth. On an interview last May, Trump says he wants to see the overhaul of the Dodd-Frank Act, a financial regulatory law passed in 2010 under the Obama administration. Following the big recession of 2008, the Dodd-Frank Act limits the state and the public's dependence on banks, and places the financial industry's regulation on the state.  

Trump is quoted into saying, "Dodd-Frank has made it impossible for bankers to function... It makes it very hard for bankers to loan money for people to create jobs, for people with businesses to create jobs. And that has to stop."

Analysts foresee BAC's rising stocks to be a boon to higher long-term interest rates as these can give way to higher bank profits, larger capacities to take more people under the bank's accounts, and decreased financial risks both for banks and depositors. 

    Most Popular
  • Is 'The Last Supper' worth watching? Audience and critics weigh in

    Is 'The Last Supper' worth watching? Audience and critics weigh in

    Faith-based films often receive mixed reactions, and The Last Supper is no exception. The movie attempts to bring a fresh perspective to one of the most iconic moments in Christian history, but does it succeed? Some reviews from critics and audiences provide insight into its strengths and shortcomings.

  • ‘The Chosen’ Season 5: The darkest season yet—What to know before watching

    The wait is over—The Chosen is back with its fifth season, and this time, things are getting intense. The new episodes dive straight into the final days of Jesus’ life, covering some of the most emotional and dramatic moments in the Bible. If you’ve been following the series, you already know that The Chosen isn’t just about retelling familiar stories—it’s about bringing them to life in a way that feels real.

  • Massacres in Syria: Over 1,000 dead, including Christians and Alawites

    Syria’s coastal regions have been devastated by a series of massacres, with reports indicating that over 1,000 people—many from Christian and Alawite communities—have been killed in brutal attacks. Entire families have been wiped out, and survivors are fleeing in search of safety as sectarian violence escalates.

  • Kim Sae-ron and Wheesung: The tragic irony of Korean society and the principles of happiness

    Not long ago, the media was in an uproar over actress Kim Sae-ron’s passing. Just months before, the same people who had relentlessly criticized her for her DUI incident were now expressing sympathy, saying, "The world was too harsh on her." The irony is impossible to ignore.

  • Newsboys move forward as a quartet after Michael Tait’s departure

    After more than a decade as the lead singer of the Newsboys, Michael Tait has officially parted ways with the band, marking a significant shift in the Christian rock group’s lineup. The remaining members—Jeff Frankenstein, Jody Davis, Duncan Phillips, and Adam Agee—have assured fans that they will continue forward, embracing a new season of music and ministry.

Top Stories