Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, financial services giant Bank of America (NYSE:BAC) has received a distressing two-star ranking.

With that in mind, let's take a closer look at BofA's business and see what CAPS investors are saying about the stock right now.

BofA facts

Headquarters (Founded)

Charlotte, N.C. (1874)

Market Cap

$70.88 Billion


Other Diversified Financial Services

Trailing-12-Month Revenue

$57.27 Billion


CEO Kenneth Lewis (Since 2001)

CFO Joe Price (Since 2007)

Return on Equity (Average, Past Five Years and TTM)

12.7% and 3.6%

3-Month Price Change



JPMorgan Chase (NYSE:JPM)

US Bancorp (NYSE:USB)

CAPS Members Bearish on BAC Also Bearish on:

Citigroup (NYSE:C)

Wells Fargo (NYSE:WFC)

CAPS Members Bullish on BAC Also Bullish on:

General Electric (NYSE:GE)


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. 

On CAPS, 427 of the 2,247 All-Star members who have rated BofA -- or 19% -- believe the stock will underperform the S&P 500 going forward. Among the entire bearish population are rd80, who is ranked in the top 1% of our community, and CAPSnGAIN.

Last week, rd80 tapped BofA as one of the more wobbly banks to bank on:

[Bank of America] needs to raise $34 billion after the stress tests. ... An investor buying [BofA] is betting they will turn the corner and become profitable to the point they can buy the government shares back. If that plays out, [BofA] becomes a dominant, possibly the dominant bank in the US. The problem is they've got competition like [JPMorgan], [Goldman Sachs (NYSE:GS)], [Wells Fargo] and a host of regional banks that are in better shape to grab market share.

In a pitch from two days later, CAPSnGAIN also seemed stressed over BofA's financial footing:

--With a Market Cap of around $70B, and the need to raise a few more billions in response to the stress tests, it's unclear to me where they're going to come up with $45B to repay TARP.
-- although Q1 earnings beat expectations, the amount was comparable with how much Q4 earnings missed expectations, making me wonder how Q2-Q4 will turn out.
-- Analysts keep dropping the 2010 EPS estimates, making the stock more expensive on a future P/E basis.
-- Housing prices haven't started rising, despite this time of year being popular for real estate purchases.

What do you think about Bank of America, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started! 

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor recommendation. The Fool's disclosure policy always gets a perfect score.