eyeQ: value emerges at this bank stock
Experts at eyeQ use AI and their own smart machine to analyse macro conditions and generate actionable trading signals. Another bullish signal as bad news priced in.
12th May 2026 09:16
by Huw Roberts from eyeQ
"Our signals are crafted through macro-valuation, trend analysis, and meticulous back-testing. This combination ensures a comprehensive evaluation of an asset's value, market conditions, and historical performance." eyeQ
- Discover: eyeQ analysis explained | eyeQ: our smart machine in action | Glossary
Bank of America
- Model relevance: 77%
- Model value: $53.35
- Fair Value Gap: -5.54%discount to model value
Data correct as at 12 May 2026. Please click glossary for explanation of terms. Long-term strategic model.
Back in Q4 of last year US financials were on a tear. Along with Energy & Industrials, they were among the best performing parts of the equity market as investors rotated out of tech/AI and into cyclical bets.
Today, with the AI trade back dominating everything (even high oil prices and a blockaded Strait of Hormuz), financials have been lagging once again. In the case of Bank of America Corp (NYSE:BAC), the sell-off has just triggered a bullish signal on eyeQ's smart machine.
Macro relevance is high at 77% so macro matters right now. And macro momentum has been rising. It's lost a little momentum more recently but has risen 20.5% since the late March lows. The main drivers of that jump are the return of animal spirits - tighter credit spreads and switch from "risk off" to "risk on" (VIX falling back below 20).
The stock price, however, has fallen around 5.5% in the last week. Part of that will be rotation back into tech and AI. And part is being assigned to fears the Federal Reserve won't be cutting rates (which tend to benefit banks) as much as was previously hoped.
But, from eyeQ's macro perspective, a fair degree of bad news is now in the price and value is starting to emerge.
Source: eyeQ. Past performance is not a guide to future performance.
Useful terminology:
Model value
Where our smart machine calculates that any stock market index, single stock or exchange-traded fund (ETF) should be priced (the fair value) given the overall macroeconomic environment.
Model (macro) relevance
How confident we are in the model value. The higher the number the better! Above 65% means the macro environment is critical, so any valuation signals carry strong weight. Below 65%, we deem that something other than macro is driving the price.
Fair Value Gap (FVG)
The difference between our model value (fair value) and where the price currently is. A positive Fair Value Gap means the security is above the model value, which we refer to as “rich”. A negative FVG means that it's cheap. The bigger the FVG, the bigger the dislocation and therefore a better entry level for trades.
Long Term model
This model looks at share prices over the last 12 months, captures the company’s relationship with growth, inflation, currency shifts, central bank policy etc and calculates our key results - model value, model relevance, Fair Value Gap.
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