These factors make it an attractive purchase at present. Nonetheless, the bank has diversified its loan portfolio over time, reducing its credit risk overall.īank of America is currently a sound investment due to its low forward price-to-earnings ratio of 9.5 and its stable and sustainable dividend yield of 2.6%, with a payout ratio of 27%. Indeed, these metrics will be crucial to monitor in the first few quarters of 2023. While the company’s net charge-off ratio increased in the fourth quarter, the proportion of nonperforming loans decreased. The year concluded with a 50-point rate hike, placing the federal funds rate banks charge each other for overnight loans in the range of 4.25% to 4.5%.īank of America has another potential advantage, which is its credit quality. The Fed raised rates by 25 basis points in March, 50 basis points in May and then continued to grow rates by 75 basis points at each subsequent meeting. Like other banks, Bank of America experienced a surge in 2022 due to the Federal Reserve’s aggressive interest rate hikes. That’s mainly due to the company’s diversified business model, with retail banking, corporate banking, wealth management, asset management and insurance services divisions. Accordingly, given the rather uncertain outlook for banks, it’s clear that BAC stock remains a top pick among many individual and institutional investors. This top lender has seen incredibly strong earnings and profit growth of late. One of the biggest banks in the U.S., and in the world for that matter, Bank of America (NYSE: BAC) is another company I’d put in the defensive stocks to buy in an uncertain market bucket. That said, for those who own QSR stock, this is a must-hold in this period of economic uncertainty. Given the increased market risks and the fact Restaurant Brands International’s shares seem reasonably priced, there may be more attractive alternatives for investors seeking to purchase stocks in February 2023. In 2022, the company finally witnessed a considerable surge in sales that surpassed its pre-pandemic levels, causing the stock to rally impressively. Like other stocks, QSR quickly rebounded and has remained in a relatively stable trading range since then. The company’s stock price dropped drastically, going from approximately $90 per share before the pandemic to a low point in the mid-30s within a few weeks. Like many other companies, it was heavily affected at the start of the pandemic, resulting in a significant decline in sales. While relatively stable compared to other stocks, QSR stock has endured a tumultuous few years.
Interestingly, the company’s prospects have been positively impacted among technical analysts due to its strong fundamentals and growing market share in the food services industry.
This makes the company an excellent choice for risk-averse investors seeking a stable investment with steady growth potential.įrom a technical standpoint, QSR stock is currently seeing an upward trend.
With Burger King, Tim Horton’s, Popeye’s Louisiana Kitchen and recently-acquired Firehouse Subs, Restaurant Brands boasts some of the most renowned world-class franchise businesses in the world. This company owns some of the best fast-food brands in the market. In my view, Restaurant Brands (NYSE: QSR) is one of the best defensive stocks in this market right now.
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