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Headquartered in Charlotte, North Carolina, Bank of America Corporation (BAC) is a significant global financial institution with a market cap of $320.9 billion. Serving a broad range of clients, from individual consumers to large corporations and government entities, Bank of America offers an extensive suite of financial services, including wealth management, investment banking, and commercial banking solutions.
Shares of BAC have significantly outperformed the broader market over the past year. The stock has gained 62.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 36.9%. In 2024 alone, BAC is up 24.2% compared to SPX’s 19.6% rise on a YTD basis.
Narrowing the focus, the shares of BAC have underperformed compared to the Invesco KBW Bank ETF (KBWB). The exchange-traded fund has gained about 66.9% over the past year. Moreover, the ETF’s 27.1% gains on a YTD basis outshined the stock’s returns over the same time frame.
Bank of America has outperformed the broader market but has lagged behind its peers due to its exposure to regulatory risks and ongoing legal challenges. Additionally, the bank has faced criticism for handling customer data breaches and cybersecurity incidents.
BAC gained 1.6% in the subsequent trading session after the company reported its Q3 earnings results on Oct.15. Its revenue of $25.35 billion topped the consensus estimates of $25.29 billion, while its adjusted EPS of $0.81 surpassed Wall Street's expectations of $0.78.
For the current fiscal year, ending in December, analysts expect BAC’s EPS to decline 4.7% year over year to $3.26 on a diluted basis. However, the company's earnings surprise history is impressive. It beat the consensus estimate in all four quarters.
Among the 23 analysts covering BAC stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, three “Moderate Buys,” and seven “Holds.”
This configuration is slightly more bullish than three months ago, with 12 suggesting a “Strong Buy.”
Yesterday, KBW analyst David Konrad maintained a ‘Buy’ rating on Bank of America, with a price target of $50, implying a potential upside of 19.6% from current levels.
The mean price target is 45.25, representing a premium of 8.2% compared to BAC’s current price levels. The Street-high price target of $53 suggests an upside potential of 26.7%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
