Should you buy Bank of America stock after ‘stellar’ Q3 results?

Bank of America Corp (NYSE: BAC), on Monday, reported market-beating results for its fiscal third quarter. Shares are up more than 5.0% this morning.

Is Bank of America stock a ‘buy’ now?

Highlight of the earnings report was the net interest income that climbed 24% this quarter. Discussing the results on CNBC’s “Squawk on the Street”, Erika Najarian (UBS) said:

Experts had forecast $13.53 billion in net interest income. On the flip side, investment banking tanked 46% in Q3. Still, Najarian reiterated:

The U.S. Federal Reserve has signalled a terminal rate of 4.6% in 2023, which, she added, suggests about three more quarters of benefit to net interest income.

Key takeaways from Bank of America Q3 results

• Net income printed at $6.58 billion versus the year-ago $7.26 billion
• Per-share earnings slid a little from 85 cents to 81 cents
• Revenue jumped 8.0% on a year-over-year basis to $24.5 billion
• Consensus was 78 cents a share of EPS on $23.54 billion in revenue
• Average loan and lease balances went up 12% to top $1.0 trillion

Other notable figures in the earnings report include $378 million of net reserve build and a 12% annualised increase in net charge-offs.

Analyst picks Bank of America stock over JPMorgan

Erica Najarian sees the Bank of America as well-positioned for a recession. She actually prefers this stock over JPMorgan.

Her $44 price target on the Bank of America stock represents a 35% upside from here.