Bank of America (BAC)
NYSE:BAC
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Bank of America
(NYSE:BAC)
Select Model
Select Model
Rating:66Neutral
Price Target:
$50.00
▲(6.45% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by solid underlying profitability, improving leverage, and positive forward guidance (NII growth and operating leverage), supported by reasonable valuation. These strengths are tempered by weak near-term technicals and the key fundamental risk of inconsistent cash-flow generation, alongside rate-sensitivity and deposit mix headwinds discussed on the call.
Positive Factors
Diversified revenue base and segment leadership
Bank of America’s multi‑franchise model—consumer banking, wealth management and a record Global Markets franchise—creates durable, diversified fee and trading income alongside NII. Large client balances and cross‑sell capacity reduce dependence on any single cycle and support recurring revenues over the medium term.
Negative Factors
Volatile cash flow generation
Multi‑year swings in operating cash flow and declining free cash flow raise uncertainty about the quality and stability of internal cash generation. This variability makes capital planning, sustainable buybacks, and debt servicing less predictable and increases sensitivity to adverse macro or credit shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue base and segment leadership
Bank of America’s multi‑franchise model—consumer banking, wealth management and a record Global Markets franchise—creates durable, diversified fee and trading income alongside NII. Large client balances and cross‑sell capacity reduce dependence on any single cycle and support recurring revenues over the medium term.
Read all positive factors
Bank of America (BAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$346.20B
Dividend Yield1.93%
Average Volume (3M)44.54M
Price to Earnings (P/E)13.3
Beta (1Y)1.20
Revenue Growth0.15%
EPS Growth33.84%
CountryUS
Employees213,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.98
Shares Outstanding7,176,682,000
10 Day Avg. Volume45,517,709
30 Day Avg. Volume44,537,603
Financial Highlights & Ratios
PEG Ratio0.68
Price to Book (P/B)1.34
Price to Sales (P/S)2.11
P/FCF Ratio32.12
Enterprise Value/Market Cap1.38
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit4.44
Enterprise Value/Ebitda11.92
Forecast
1Y Price Target
$61.18Price Target Upside30.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)4.33
Revenue Forecast (FY)$119.93B
Bank of America Business Overview & Revenue Model
Company Description
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its C...
How the Company Makes Money
Bank of America generates revenue through several key streams. The primary source is net interest income, which comes from the difference between interest earned on loans and interest paid on deposits. Additionally, the bank earns significant inco...
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 Earnings Call Summary
Earnings Call Date:Jan 14, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 15, 2026
Earnings Call Sentiment Positive
The call presented a broad set of positive operational and financial results — strong revenue and NII growth, robust loan growth, improving asset quality, record Global Markets performance, meaningful operating leverage and substantial shareholder returns. Notable near-term challenges include a modest deposit growth backdrop, the capital impact of an accounting change, ongoing expense and investment needs, rate-sensitivity risks, and regulatory uncertainties (including potential policy actions affecting card yields). On balance, the positive results, forward guidance (NII 5%–7% and continued operating leverage), and momentum across wealth, markets and lending significantly outweigh the disclosed challenges.Positive Updates
Strong Quarterly and Annual Profitability
Q4 net income of $7.6 billion, up 12% year-over-year; Q4 EPS $0.98, up 18% year-over-year. Full-year net income grew 13% and EPS grew 19% to $3.81.
Negative Updates
Accounting Change Impact on Regulatory Capital
Adopted a change in accounting for tax-related equity investments and recast prior periods; this produced an approximate $2.1 billion reduction in CET1 capital (roughly 12 basis points) and contributed to a CET1 ratio decline from 11.6% to 11.4%.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Annual Profitability
Q4 net income of $7.6 billion, up 12% year-over-year; Q4 EPS $0.98, up 18% year-over-year. Full-year net income grew 13% and EPS grew 19% to $3.81.
Read all positive updates
Company Guidance
Management guided 2026 NII growth of 5%–7% (Investor Day range) and said Q1 NII should be roughly +7% y/y (using Q4 as a base after a ~$100m markets shift and two fewer interest days), noting a 100 bps instantaneous rate cut would reduce 12‑month NII growth by about $2.0bn while a 100 bps rise would add ≈$700m; they expect $12–15bn of MBS/mortgage assets to roll off quarterly and be replaced at ~150–200 bps higher. On costs, Q1 expense is expected to be ~4% above Q1 ’25 and the firm targets roughly 200 bps of operating leverage for 2026 (vs. a 200–300 bps medium‑term range), after delivering 330 bps in Q4 and 250 bps for FY25. Credit guidance assumes continued stability (Q4 net charge‑offs $1.3bn; NCO ratio 44 bps, down 10 bps y/y; provision $1.3bn). Capital/other metrics: CET1 11.4% (vs 11.6% prior), supplemental leverage ratio 5.7% (vs minimums 5% and 3.75% under new rule), TLAC $467bn, tangible book $28.73 (+9% y/y), diluted shares down ~300m (−4%), Q4 capital returned $8.4bn ($2.1bn dividend, $6.3bn buybacks) and >$30bn for FY25 (41% higher), effective tax rate ≈20% for 2026, loans averaged $1.17tn (+8% y/y) with embedded mid‑single‑digit loan growth, and average deposits were +3% y/y with rate paid on deposits ~163 bps (consumer deposits ≈55 bps).Bank of America Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 191.57B | 192.43B | 171.91B | 115.05B | 93.85B |
| Gross Profit | 107.42B | 96.07B | 94.19B | 92.41B | 93.71B |
| EBITDA | 40.01B | 31.44B | 30.40B | 32.95B | 35.87B |
| Net Income | 30.51B | 27.13B | 26.52B | 27.53B | 31.98B |
Balance Sheet | |||||
| Total Assets | 3.41T | 3.26T | 3.18T | 3.05T | 3.17T |
| Cash, Cash Equivalents and Short-Term Investments | 963.73B | 642.92B | 608.07B | 458.25B | 654.54B |
| Total Debt | 365.90B | 658.43B | 618.19B | 498.55B | 496.20B |
| Total Liabilities | 3.11T | 2.97T | 2.89T | 2.78T | 2.90T |
| Stockholders Equity | 303.24B | 295.56B | 291.65B | 273.20B | 270.07B |
Cash Flow | |||||
| Free Cash Flow | 12.61B | -8.80B | 44.98B | -6.33B | -7.19B |
| Operating Cash Flow | 12.61B | -8.80B | 44.98B | -6.33B | -7.19B |
| Investing Cash Flow | -145.16B | -90.69B | -35.39B | -2.53B | -313.29B |
| Financing Cash Flow | 69.95B | 60.37B | 93.34B | -106.04B | 291.65B |
Bank of America Technical Analysis
Negative
46.97
Price Trends
50.94
Negative
52.32
Negative
50.25
Negative
Market Momentum
-0.98
Negative
44.23
Neutral
81.76
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAC, the sentiment is Negative. The current price of 46.97 is below the 20-day moving average (MA) of 48.19, below the 50-day MA of 50.94, and below the 200-day MA of 50.25, indicating a neutral trend. The MACD of -0.98 indicates Negative momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 81.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAC.
Bank of America Risk Analysis
Bank of America disclosed 1 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $274.47B | 12.28 | 11.88% | 4.14% | -9.54% | -22.46% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $786.62B | 15.75 | 15.95% | 1.79% | 1.89% | 12.32% | |
66 Neutral | $346.20B | 13.28 | 10.15% | 1.93% | 0.15% | 33.84% | |
64 Neutral | $244.12B | 16.00 | 13.81% | 1.55% | 2.31% | 44.49% | |
61 Neutral | $243.83B | 13.89 | 11.78% | 1.80% | -4.37% | 26.41% | |
58 Neutral | $196.64B | 21.83 | 6.71% | 1.94% | -0.62% | 105.57% |
* Financial Sector Average
BAC
Bank of America
46.97
6.63
16.43%
C
Citigroup
107.38
38.83
56.65%
HSBC
HSBC Holdings
79.19
24.29
44.24%
JPM
JPMorgan Chase
282.84
44.87
18.86%
WFC
Wells Fargo
77.19
8.00
11.57%
GS
Goldman Sachs Group
802.89
270.79
50.89%
Bank of America Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Bank of America Raises CEO Moynihan’s 2025 Compensation
Positive
Feb 13, 2026
Bank of America’s board approved a 2025 total compensation package of $41 million for chair and CEO Brian Moynihan, up from $35 million in 2024, citing his leadership in delivering stronger financial and market performance in 2025. The bank ...
Business Operations and StrategyFinancial Disclosures
Bank of America posts strong Q4 2025 earnings growth
Positive
Jan 14, 2026
On January 14, 2026, Bank of America reported that its fourth-quarter 2025 net income rose to $7.6 billion, with earnings per share up 18% year-on-year to $0.98, on revenue of $28.4 billion driven by higher net interest income, asset management fe...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Bank of America Updates Accounting for Tax Equity Investments
Neutral
Jan 6, 2026
Bank of America has retrospectively changed its accounting methods for tax-related equity investments in affordable housing and wind and solar renewable energy, moving affordable housing and eligible wind investments from the equity method to the ...
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.