The financials have come under significant pressure amid impending rate hikes and increasing geopolitical tensions. With Bank Of America Corp (NYSE: BAC) shares down more than 15% over the last month, Odyssey Capital's Jason Snipe decided to buy in.
"We've been talking about the tightening cycle for a long time, we're finally here," Snipe said Friday on CNBC's "Fast Money Halftime Report."
Once the tightening cycle is officially underway, which is expected in the upcoming Fed meeting, he expects some of the volatility to ease. Snipe also thinks the labor market's encouraging signs should level out supply chain issues. The combination should help moderate inflation, he explained.
See Also: This Is What Whales Are Betting On Bank of America (NYSE:BAC)
Why Bank Of America? "We're focusing on quality," Snipe said.
He highlighted the revenue and net interest growth from the company's most recent earnings report, but the main reason he bought the stock is for its loan growth. Commercial loan growth has really taken off at Bank Of America, he added.
Snipe told CNBC the recent pullback is a "little bit overblown," which created the opportunity to put some capital to work.
BAC Price Action: Bank Of America has traded between $35.81 and $50.11 over a 52-week period.
The stock was down 3.92% at $40.82 at time of publication.
Photo: Shane Global from Flickr.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga