Will Bank of America grow?
Ongoing Expansion
Future criteria checks 1/6
Bank of America is forecast to grow earnings and revenue by 3.8% and 3.9% per annum respectively. EPS is expected to grow by 5% per annum. Return on equity is forecast to be 9.7% in 3 years.
BAC Stock Forecast FAQ
Based on analyst ratings, Bank of America's 12-month average price target is $39.12. What is BAC's upside potential, based on the analysts' average price target? Bank of America has 9.30% upside potential, based on the analysts' average price target.
Is Bank of America stock a Buy, Sell or Hold? Bank of America stock has received a consensus rating of buy. The average rating score is A1 and is based on 47 buy ratings, 23 hold ratings, and 6 sell ratings. What was the 52-week low for Bank of America stock?
Bank of America's Financial Health
Its financial health is crucial to the stability of the US banking system. In recent years, Bank of America's financial performance has been relatively stable.
The brokerage raised its 2024 earnings per share (EPS) forecast for the index companies to $250 from the previously expected $235. BofA strategists said that "2023 was a transition year for Corporate America, and companies have now adjusted to the new higher rate and tepid demand environment."
Experts have mixed opinions on Bank of America, with some recommending it as a top pick with strong wealth management and investment banking while others express concerns about potential risks such as commercial real estate and rising interest rates.
Bank of America Corp. reported elevated expenses and charge-offs for soured loans that were higher than analysts expected, failing to satisfy investors with a gain in its trading business. Charge-offs totaled $1.5 billion, up 26% from the last three months of 2023, Bank of America said in a statement Tuesday.
The bank was supposed to be one of the biggest beneficiaries of higher interest rates last year, but it has underperformed its peers because the lender had piled into low-yielding, long-dated securities during the Covid-19 pandemic. Those securities lost value as interest rates climbed.
Bank of America Earnings Drop, Under Pressure From Higher Rates; Stock Falls. Bank of America reported a 18% drop in first-quarter profit, the latest big lender to feel the squeeze of higher interest rates.
Who is the largest shareholder of Bank of America?
Berkshire Hathaway (BRK.A 0.36%)(BRK.B 0.21%): Warren Buffett's Berkshire Hathaway is the largest Bank of America shareholder, with 1.03 billion shares amounting to a 13% stake. As of March 2024, it was the second-largest of Warren Buffett's stock holdings after Apple (AAPL -0.81%), worth almost $37 billion.
| Company (Ticker) | Sector | Market Cap |
|---|---|---|
| Bank of America (BAC) | Financials | $282.41B |
| Wells Fargo & Co. (WFC) | Financials | $199.49B |
| Citigroup (C) | Financials | $113.83B |
| UBS (UBS) | Financials | $91.89B |
Compared to the current market price of 35.35 USD, Bank of America Corp is Undervalued by 25%.
Analysts say it is highly unlikely that Bank of America would sell the securities at a loss because the lender has strong liquidity with consumer deposits and higher capital. Keeping securities until maturity also gives it the flexibility to avert mark-to-market losses.
Revenue was down 2% year over year as higher investment banking and trading revenues were unable to offset lower net interest income. Revenue in the consumer banking segment was down 5%, and average deposits were down 7% but remain well above pre-pandemic levels.
It is among the 10 largest U.S. wealth managers. It has over $2.5 trillion in client balances. GWIM has five primary lines of business: Premier Banking & Investments (including Bank of America Investment Services, Inc.), The Private Bank, Family Wealth Advisors, and Bank of America Specialist.
S&P 500 10 Years Forecast (Until 2032)
Historical gains averaging around 8% per year underscore the index's long-term potential. Bank of America forecasts a range of 5150 to 8700 by 2030. Others suggest a lofty 10,000 by 2032, dependent on factors like the U.S. dollar's strength.
Stock Price Forecast
The 15 analysts with 12-month price forecasts for Bank of America stock have an average target of 38.59, with a low estimate of 33 and a high estimate of 45. The average target predicts an increase of 9.54% from the current stock price of 35.23.
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Bank of America is the second-largest bank in America in terms of assets, and they're FDIC insured up to $250,000 per depositor. They offer fraud protection and other security features like third-party access reviews and customized reviews, so you can keep an eye on your accounts.
Is Bank of America a good or bad bank?
Bank of America is a reputable option for customers who want both in-person and online service, but its deposit accounts generally have low rates. Key Takeaways: We rate Bank of America 4 out of 5 stars, giving it high marks for branch and ATM access but lower scores for its rates on deposit accounts.
- Bank of America's rates on savings aren't very competitive.
- It's not easy to avoid the monthly maintenance fee on the checkless Advantage SafeBalance checking account.
Bank of America has received a consensus rating of Hold. The company's average rating score is 2.44, and is based on 8 buy ratings, 7 hold ratings, and 1 sell rating.
Share Price vs Fair Value
Significantly Below Fair Value: BAC is trading below fair value by more than 20%.
Bank of America Corp's trailing 12-month revenue is $130.3 billion with a 19.1% profit margin. Year-over-year quarterly sales growth most recently was 42.1%. Analysts expect adjusted earnings to reach $3.135 per share for the current fiscal year. Bank of America Corp currently has a 2.7% dividend yield.
