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Bank of America
(NYSE:BAC)
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Rating:64Neutral
Price Target:
$54.00
â–¼(-13.50% Downside)
Action:Reiterated
Date:10/24/26
The score is driven mainly by solid underlying financial performance (improving profitability and a strong TTM cash-flow rebound) and a constructive earnings outlook centered on net interest income growth and operating leverage. These are meaningfully offset by weak technicals (downtrend with negative momentum) and a balance-sheet risk note from higher leverage; valuation remains supportive but not a primary driver.
Positive Factors
Net Interest Income Growth
Expected net interest income growth provides a durable earnings engine because it combines loan and deposit expansion with fixed-rate asset repricing. Management’s multi-year outlook also supports better operating leverage, giving the bank a stronger foundation for profitability over the next several quarters.
Negative Factors
Regulatory and Remediation Costs
The settlement directly reduced reported earnings and highlights ongoing remediation demands that can keep expenses elevated. Thousands of employees are involved, so the burden may persist beyond one quarter and reduce the operating leverage available from revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Net Interest Income Growth
Expected net interest income growth provides a durable earnings engine because it combines loan and deposit expansion with fixed-rate asset repricing. Management’s multi-year outlook also supports better operating leverage, giving the bank a stronger foundation for profitability over the next several quarters.
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
$350.01B
Dividend Yield2.29%
Average Volume (3M)43.15M
Price to Earnings (P/E)11.9
Beta (1Y)1.17
Revenue Growth-1.02%
EPS Growth14.91%
CountryUS
Employees211,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)4.41
Shares Outstanding6,922,695,300
10 Day Avg. Volume48,499,651
30 Day Avg. Volume43,150,431
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 Cap3.11
Enterprise Value/Revenue5.57
Enterprise Value/Gross Profit9.39
Enterprise Value/Ebitda23.51
Forecast
1Y Price Target
$62.88Price Target Upside0.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)4.4
Revenue Forecast (FY)$122.77B
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 primarily earns revenue from net interest income and noninterest income across its business segments.
1) Net interest income (core banking spread): The bank takes deposits and other funding sources and uses them to make loans and ...
Bank of America Earnings Call Summary
Earnings Call Date:Oct 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 15, 2027
Earnings Call Sentiment Positive
The call was broadly constructive, with strong adjusted earnings, net interest income growth, loan and deposit momentum, record wealth-management flows, improved credit quality, solid capital generation, and continued productivity and AI investments. The main negatives were the $1.2 billion regulatory settlement, higher expenses, lower FICC and investment banking revenue, and a lower CET1 ratio. Management maintained positive medium-term operating-leverage and NII expectations, and the highlights significantly outweighed the lowlights.Positive Updates
Solid Adjusted Earnings and Revenue Growth
Third-quarter net income was $6.9 billion and earnings per share were $0.91. Excluding the $1.2 billion non-tax-deductible regulatory settlement charge, net income was $8.1 billion, or approximately $1.08 per share, up from last year. Revenue was approximately $30 billion, up around 3% year-over-year.
Negative Updates
Significant Regulatory Settlement Charge
Third-quarter results included a $1.2 billion non-tax-deductible regulatory settlement charge, reducing reported earnings by $0.17 per share. All other reported a loss of $1.4 billion, including the settlement charge. Management also stated that a couple hundred million dollars plus was spent on remediation during the quarter and that thousands of employees are involved.
Read all updates
Q3-2026 Updates
Positive
Negative
Solid Adjusted Earnings and Revenue Growth
Third-quarter net income was $6.9 billion and earnings per share were $0.91. Excluding the $1.2 billion non-tax-deductible regulatory settlement charge, net income was $8.1 billion, or approximately $1.08 per share, up from last year. Revenue was approximately $30 billion, up around 3% year-over-year.
Read all positive updates
Company Guidance
Management expects NII to improve sequentially in Q4 and again through 2027, based on anticipated modest loan and deposit growth and continued fixed-rate asset repricing, assuming three 25-basis points rate increases through June of 2027, so in December 2026 and March and June of next year; it still expects to hit its full-year revised NII growth guidance of approximately 8%, while for 2027 it currently expects full-year growth of NII to be 8% or more, higher than 2026. Management expects to return to operating leverage in Q4 and reiterated 200-300 basis points through the medium term, with 2027 guidance to be provided in Q4; it assumes low single digits for deposit growth broadly, plans to open about another 20 or more financial centers by year-end, expects AI-related projects to increase from the $250, $300 this year to $700 million next year, and said technology development should become 10% more efficient, producing 10% more work for the same cost next year.Bank of America Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 195.19B | 191.57B | 192.43B | 171.91B | 115.05B | 93.85B |
| Gross Profit | 115.79B | 107.42B | 96.07B | 94.19B | 92.41B | 93.71B |
| EBITDA | 46.26B | 40.01B | 31.44B | 30.40B | 32.95B | 35.87B |
| Net Income | 33.66B | 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 | 28.62B | 963.73B | 642.92B | 608.07B | 458.25B | 654.54B |
| Total Debt | 732.06B | 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 | 301.09B | 303.24B | 295.56B | 291.65B | 273.20B | 270.07B |
Cash Flow | ||||||
| Free Cash Flow | 94.74B | 12.61B | -8.80B | 44.98B | -6.33B | -7.19B |
| Operating Cash Flow | 94.74B | 12.61B | -8.80B | 44.98B | -6.33B | -7.19B |
| Investing Cash Flow | -82.44B | -145.16B | -90.69B | -35.39B | -2.53B | -313.29B |
| Financing Cash Flow | -46.76B | 69.95B | 60.37B | 93.34B | -106.04B | 291.65B |
Bank of America Technical Analysis
Negative
62.43
Price Trends
57.63
Negative
58.36
Negative
54.64
Negative
Market Momentum
-1.96
Positive
26.39
Positive
27.45
Neutral
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 62.43 is above the 20-day moving average (MA) of 52.91, above the 50-day MA of 57.63, and above the 200-day MA of 54.64, indicating a bearish trend. The MACD of -1.96 indicates Positive momentum. The RSI at 26.39 is Positive, neither overbought nor oversold. The STOCH value of 27.45 is Neutral, 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 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $309.84B | 12.82 | 13.03% | 4.13% | -5.19% | 39.48% | |
70 Outperform | $881.40B | 13.89 | 17.91% | 1.85% | 8.74% | 18.04% | |
70 Outperform | $92.83B | 11.61 | 12.65% | 3.52% | 1.06% | 17.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $350.01B | 11.87 | 10.69% | 2.29% | -1.02% | 14.91% | |
64 Neutral | $247.31B | 11.41 | 12.86% | 2.25% | 5.67% | 16.80% | |
58 Neutral | $202.33B | 11.61 | 9.15% | 2.05% | 4.73% | 44.35% |
* Financial Sector Average
BAC
Bank of America
50.56
-1.35
-2.61%
C
Citigroup
120.62
21.72
21.97%
HSBC
HSBC Holdings
90.68
26.43
41.13%
JPM
JPMorgan Chase
331.58
33.18
11.12%
USB
US Bancorp
59.58
13.55
29.44%
WFC
Wells Fargo
82.39
-2.76
-3.24%
Bank of America Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Bank of America Issues New Series WW Preferred Stock
Positive
Oct 23, 2026
On October 23, 2026, Bank of America issued 80,000 shares of its 7.200% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series WW, with a liquidation preference of $25,000 per share. On the same date, it filed a Certificate of Designations in Del...
Business Operations and StrategyExecutive/Board Changes
Bank of America Expands Board With Two New Directors
Positive
Oct 21, 2026
On October 21, 2026, Bank of America’s board expanded from 12 to 14 directors and appointed Jim Fitterling, executive chairman and former CEO of Dow Inc., and Bill Thomas, former global chairman and CEO of KPMG International, as directors, e...
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
Bank of America posts solid Q3 2026 earnings
Positive
Oct 14, 2026
On October 14, 2026, Bank of America reported third-quarter 2026 net income of $6.9 billion, or $0.91 per share, on revenue of $30.0 billion, up 3% year over year, as net interest income rose 8% to $16.4 billion and asset management fees increased...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Bank of America Raises Quarterly Dividend, Highlights Strength
Positive
Jul 24, 2026
On July 24, 2026, Bank of America’s board increased the regular quarterly cash dividend on its common stock by 14% to $0.32 per share, payable on September 25, 2026 to shareholders of record on September 4, 2026. The board also declared a re...
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.