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Bank of America
(NYSE:BAC)
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Rating:72Outperform
Price Target:
$64.00
▲(18.72% Upside)
Action:Reiterated
Date:05/07/26
The score is driven most by a strong, upbeat earnings outlook (raised NII guidance and solid operating leverage) and constructive technical trend (trading above key moving averages with neutral momentum). Valuation is supportive with a low P/E and reasonable dividend yield. The main constraints are the financial statement signals of TTM revenue contraction and historically choppy cash flow, plus capital and commercial-credit items flagged on the call (CET1 drift and criticized exposures).
Positive Factors
Net Interest Income & Guidance
Management raising NII guidance and delivering a mid‑single digit NII lift signals durable earnings upside from spread management, deposit repricing and funding optimization. Over the next 2–6 months stronger NII underpins cash generation and supports continued operating leverage.
Negative Factors
CET1 Ratio Drift
A contracting CET1 ratio from capital returns and balance‑sheet growth erodes the regulatory cushion. Over several months this constrains discretionary buybacks/dividends, raises sensitivity to final capital rule changes, and limits margin for unexpected credit shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Net Interest Income & Guidance
Management raising NII guidance and delivering a mid‑single digit NII lift signals durable earnings upside from spread management, deposit repricing and funding optimization. Over the next 2–6 months stronger NII underpins cash generation and supports continued operating leverage.
Read all positive factors
Bank of America Key Performance Indicators (KPIs)
Any
Consumer Checking Accounts
Tracks the number of consumer checking accounts, reflecting customer base size and engagement, which are critical for cross-selling opportunities.
Tracks the number of consumer checking accounts, reflecting customer base size and engagement, which are critical for cross-selling opportunities.
Data provided by:
The Fly
The FlyBank of America (BAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$410.75B
Dividend Yield1.93%
Average Volume (3M)37.77M
Price to Earnings (P/E)14.2
Beta (1Y)1.14
Revenue Growth-1.69%
EPS Growth20.90%
CountryUS
Employees213,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)4.09
Shares Outstanding7,096,591,000
10 Day Avg. Volume37,824,384
30 Day Avg. Volume37,769,358
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)1.34
Price to Sales (P/S)2.11
P/FCF Ratio32.12
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue3.10
Enterprise Value/Gross Profit4.91
Enterprise Value/Ebitda12.81
Forecast
1Y Price Target
$62.30Price Target Upside15.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)4.48
Revenue Forecast (FY)$121.53B
Bank of America Business Overview & Revenue Model
Company Description
Operating globally through its various subsidiaries, Bank of America Corporation offers a comprehensive range of banking and financial products and services. Its extensive clientele includes individual consumers, small and mid-market businesses, i...
How the Company Makes Money
Bank of America makes money primarily through a combination of net interest income and noninterest income generated across its banking, wealth, investment banking, and markets businesses.
1) Net interest income (spread-based banking): A core earn...
Bank of America Earnings Call Summary
Earnings Call Date:Apr 15, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 14, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive performance: broad-based revenue and earnings growth, strong operating leverage, improved efficiency and benign credit trends. Management raised NII guidance, delivered solid segment results (consumer, wealth, global banking, global markets) and continued disciplined capital deployment and expense management. Key risks and watch items include a modest decline in CET1 ratio after buybacks, certain criticized commercial exposures (~$24B), potential dispersion in private credit vintages, regulatory rule finalization uncertainty, and the still-developing long-term impact of AI and technology on cost and operations. Overall, the positives outweigh the lowlights, though several areas merit ongoing monitoring.Positive Updates
Revenue and EPS Growth
Total revenue rose to $30.3 billion, up 7% year-over-year, while earnings per share increased 25% year-over-year to $1.11, driven by balanced business performance, client activity and operating leverage.
Negative Updates
CET1 Ratio Decline
The CET1 capital ratio declined 14 basis points to 11.2% quarter-over-quarter, primarily reflecting capital returned to shareholders (dividends and buybacks) and balance sheet growth; ratio remains above regulatory requirements but moved down.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and EPS Growth
Total revenue rose to $30.3 billion, up 7% year-over-year, while earnings per share increased 25% year-over-year to $1.11, driven by balanced business performance, client activity and operating leverage.
Read all positive updates
Company Guidance
The company raised full‑year net interest income (NII) growth guidance to +6%–8% (Q1 NII was $15.9B, +9% y/y) assuming modest loan and deposit growth, and reiterated it expects >200 bps of positive operating leverage for 2026 after delivering 290 bps in Q1; other Q1 metrics: revenue $30.3B (+7% y/y), EPS $1.11 (+25% y/y), noninterest expense $18.5B (+4% y/y), efficiency ratio ~61% (improved ~170 bps y/y), ROTCE 16% (within the 16%–18% medium‑term target), net charge‑offs ~$1.4B (net loss rate 48 bps), provision expense ~$1.3B (modest net reserve release), total assets ~$3.5T (+2% q/q), average deposits +$59B y/y to >$2T (rate paid on deposits down 16 bps to 1.47%), CET1 capital >$200B with CET1 ratio 11.2% (down 14 bps), liquidity >$960B, repurchases $7.2B and dividends $2B in Q1, and a full‑year effective tax rate guidance of just over 20%; management also noted NII sensitivity of roughly –$2B for a 100 bp rate decline and +<$0.5B for a 100 bp increase over 12 months.Bank of America Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 174.85B | 191.57B | 192.43B | 171.91B | 115.05B | 93.85B |
| Gross Profit | 110.47B | 107.42B | 96.07B | 94.19B | 92.41B | 93.71B |
| EBITDA | 42.35B | 40.01B | 31.44B | 30.40B | 32.95B | 35.87B |
| Net Income | 31.70B | 30.51B | 27.13B | 26.52B | 27.53B | 31.98B |
Balance Sheet | ||||||
| Total Assets | 3.50T | 3.41T | 3.26T | 3.18T | 3.05T | 3.17T |
| Cash, Cash Equivalents and Short-Term Investments | 249.87B | 963.73B | 642.92B | 608.07B | 458.25B | 654.54B |
| Total Debt | 383.59B | 365.90B | 658.43B | 618.19B | 498.55B | 496.20B |
| Total Liabilities | 3.20T | 3.11T | 2.97T | 2.89T | 2.78T | 2.90T |
| Stockholders Equity | 300.67B | 303.24B | 295.56B | 291.65B | 273.20B | 270.07B |
Cash Flow | ||||||
| Free Cash Flow | 56.57B | 12.61B | -8.80B | 44.98B | -6.33B | -7.19B |
| Operating Cash Flow | 56.57B | 12.61B | -8.80B | 44.98B | -6.33B | -7.19B |
| Investing Cash Flow | -122.60B | -145.16B | -90.69B | -35.39B | -2.53B | -313.29B |
| Financing Cash Flow | 33.03B | 69.95B | 60.37B | 93.34B | -106.04B | 291.65B |
Bank of America Technical Analysis
Positive
53.91
Price Trends
53.12
Positive
51.71
Positive
51.92
Positive
Market Momentum
1.62
Negative
72.04
Negative
74.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAC, the sentiment is Positive. The current price of 53.91 is below the 20-day moving average (MA) of 55.15, above the 50-day MA of 53.12, and above the 200-day MA of 51.92, indicating a bullish trend. The MACD of 1.62 indicates Negative momentum. The RSI at 72.04 is Negative, neither overbought nor oversold. The STOCH value of 74.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAC.
Bank of America Risk Analysis
Bank of America disclosed 2 risk factors in its most recent earnings report. Bank of America reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bank of America Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $881.69B | 15.73 | 16.32% | 1.79% | 1.33% | 2.47% | |
73 Outperform | $322.65B | 15.39 | 12.07% | 4.14% | -6.12% | 12.49% | |
72 Outperform | $410.75B | 14.15 | 10.50% | 1.93% | -1.69% | 20.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $300.79B | 18.39 | 14.58% | 1.55% | 2.63% | 26.98% | |
65 Neutral | $243.11B | 17.28 | 7.53% | 1.94% | 3.02% | 27.74% | |
65 Neutral | $256.63B | 12.71 | 12.04% | 1.80% | 1.28% | 16.35% |
* Financial Sector Average
BAC
Bank of America
57.88
11.57
24.98%
C
Citigroup
141.76
58.53
70.32%
HSBC
HSBC Holdings
93.75
35.79
61.74%
JPM
JPMorgan Chase
329.05
44.67
15.71%
WFC
Wells Fargo
83.86
5.46
6.97%
GS
Goldman Sachs Group
1,019.61
325.83
46.96%
Bank of America Corporate Events
Business Operations and StrategyShareholder Meetings
Bank of America Shareholders Back Leadership and Governance Status Quo
Positive
May 6, 2026
At its 2026 Annual Meeting of Shareholders held on May 4, 2026, Bank of America shareholders re-elected all director nominees, endorsed the non-binding advisory vote on executive compensation, and ratified PricewaterhouseCoopers LLP as the indepen...
Stock BuybackDividendsFinancial Disclosures
Bank of America Posts Strong First-Quarter 2026 Earnings Growth
Positive
Apr 15, 2026
Bank of America reported first-quarter 2026 results showing net income of $8.6 billion and diluted earnings per share of $1.11, up 17% and 25% year over year, respectively, on April 15, 2026. Revenue rose 7% to $30.3 billion, driven by a 9% increa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.