Today's Top Dow Stock

Santa has now come and gone, and so is any hint of a Santa Claus rally. If stocks continue on their current trend, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) will finish lower for the third day in a row.

But while nearly two-thirds of the blue chip index's component stocks are down, one is soaring. At roughly halfway through the trading session, shares of Bank of America (NYSE: BAC  ) are up by 2.6%, making it the day's best-performing stock.

The reason the nation's second-largest lender by assets has distinguished itself is, as Churchill famously said, "a riddle, wrapped in a mystery, inside an enigma." While a report out this morning showed that housing prices improved both sequentially and year over year, a different report revealed that holiday retail sales fell short of expectations. Not to mention that shares of B of A's closet competitors -- JPMorgan Chase (NYSE: JPM  ) , Citigroup (NYSE: C  ) , and Wells Fargo (NYSE: WFC  )  -- are all effectively flat.

The explanation for today's performance, in turn, appears to have less to do with fundamentals than it does with trading patterns and year-end portfolio repositioning. With respect to the former, and as I've noted before, B of A is one of the market's most actively traded stocks, contributing to heightened volatility and unpredictability. And in terms of the latter, with only a few days left in 2012, many hedge funds are undergoing the annual ritual known as "window dressing," in which fund managers spruce up their portfolios before the end of the year.

These largely irrelevant impetuses aside, from the perspective of a long-term investor, I remain an unabashed B of A bull. As I've discussed on multiple occasions previously, there were three reasons B of A soared in 2012, leading me to proclaim that the bank has finally turned the corner and is now a buy.

Moreover, I'm not the only one who thinks this. In our recent in-depth report on B of A, our senior financial analyst Anand Chokkavelu predicted that it could "double or triple over the next five years." Suffice it to say, determining why this is so could make a lot of investors a lot of money. Thus, to get your own copy of Anand's report, simply click here now.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2169356, ~/Articles/ArticleHandler.aspx, 10/24/2014 9:31:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement