Bank of America (+1.01%) - the darling of the best
Shares of one of the largest US banks may be a surprise entrant on the list of the most traded CFD stocks. This is because Bank of America did not experience any significant volatility
nor did it have any economic results
in the past week. Even so, Bank of America shares may be of interest to value investors and speculators alike. The bank's stock is currently hovering near a one-year low
and has written down over a quarter of its value
since the beginning of the year. With a current P/E ratio of around 10 and a dividend yield of over 2.5%, it may be an interesting choice for value investors. Moreover, Bank of America is also a significant component of Warren Buffett's portfolio and famous hedge funds.
Chart 2: Bank of America shares on the MT4 platform on the M30 timeframe along with the 50 and 100 day moving averages
How have the last few weeks been from Bank of America's perspective? In the second half of July, the company reported earnings
results that pleased
investors quite a bit. Revenues grew 6% to $22.8 billion and profits reached $6.25 billion, which was a big deterioration compared to last year (due to regulatory costs), but the company still beat analysts' expectations.
The coming months promise volatility among banks as well
. Rising interest rates are rather positive for banks
as they can earn more interest on the loans they issue. However, the possible recession, which is constantly being talked about, is negative. In a recession, the banking sector is one of the hardest hit
, as people find it difficult to repay their loans. So Bank of America is worth keeping an eye on.
Ferrari NV (+1.51%) - when you do better on the markets than on the track
The only non-American title on the list of the Purple Trading’s most traded stocks is the famous carmaker Ferrari. Ferrari's performance in Formula 1 probably brings tears to the eyes of its fans, but fortunately this is not the case in the stock markets. Ferrari shares are down less than 9% since the start of the year
, a very respectable performance compared to most car companies. Moreover, let's not forget that luxury car companies are highly cyclical companies
that could be significantly damaged by a recession. However, all is well with Ferrari, as evidenced by the financial results the carmaker published last week.
Chart 3: Shares of Ferrari NV on the MT4 platform on the D1 timeframe along with the 50 and 100 day moving averages
Ferrari has had a record quarter
. It's not just the number of bad strategic decisions made by the Formula 1 team, but also the number of cars sold. The company's sales and profits are up more than 20% year-on-year and the company has also increased its forecast for the rest of the year
, which is quite unprecedented in the current climate. Ferrari delivered 3,455 new cars in the second quarter of the year - 29% more customers making their dreams come true year-on-year. The most popular models are the eight-cylinder Portofino M and the F8. Ferrari also started production of the new 296 GTB.
However, Ferrari hasn't pulled the biggest ace out of its sleeve yet - it's the planned Purosangue SUV
, which is due to start production next year. This model's success is almost certain, with rival Lamborghini having already sold over 20,000 units of the Urus SUV
since its launch, making it the carmaker's best-selling model. However, despite all the positives, a potential recession could be a big risk for Ferrari shares and a look at the stock's performance since the start of the year clearly shows that there is increased volatility here too.