Financial giant Bank of America Corp (NYSE: BAC) did almost everything right in 2025. The stock logged a powerful rally, hit a record high, and finished the year in strong form. It even pushed on to fresh all-time highs in the first few trading days of January, and the bulls looked set to remain in control in 2026.
Then things cooled. A pullback set in, gathering pace after the bank’s earnings report two weeks ago, and knocking roughly 10% off the share price. On the surface, it has not been a great start to the year. But zoom out, and the picture isn’t actually that bad. The broader uptrend remains intact, selling pressure is already starting to look tired, and the stock’s valuation has reset to one of the lowest price-to-earnings (P/E) multiples among mega-cap stocks today.
