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Bank of America
(NYSE:BAC)
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Rating:73Outperform
Price Target:
$66.00
â–²(22.43% Upside)
Action:Reiterated
Date:07/14/26
BAC scores well due to strong technical momentum and an upbeat earnings outlook (raised NII expectations and improved operating leverage), supported by improving profitability and de-risking leverage. The main constraints are the TTM revenue decline and historically choppy cash-flow profile, with valuation appearing reasonable but not exceptionally compelling given the modest dividend yield.
Positive Factors
Diversified, scale-driven revenue streams
Bank of America's broad franchise spans consumer banking, wealth management, global banking and markets, which reduces single-cycle sensitivity. Durable revenue mix enables cross-selling, recurring fee engines (GWIM) and diversified capital-markets income, supporting more predictable medium-term earnings.
Negative Factors
Volatile cash generation
Large swings in operating and free cash flow across years reduce predictability of internal funding for buybacks, dividends and investments. Reliance on cyclical market and balance-sheet items means cash generation can revert, creating planning and capital-allocation risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified, scale-driven revenue streams
Bank of America's broad franchise spans consumer banking, wealth management, global banking and markets, which reduces single-cycle sensitivity. Durable revenue mix enables cross-selling, recurring fee engines (GWIM) and diversified capital-markets income, supporting more predictable medium-term earnings.
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
$434.81B
Dividend Yield1.85%
Average Volume (3M)34.75M
Price to Earnings (P/E)13.7
Beta (1Y)1.13
Revenue Growth-2.06%
EPS Growth27.92%
CountryUS
Employees212,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)4.09
Shares Outstanding7,096,591,000
10 Day Avg. Volume34,786,339
30 Day Avg. Volume34,750,207
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$67.96Price Target Upside26.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)4.62
Revenue Forecast (FY)$123.53B
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 makes money primarily through a combination of net interest income and noninterest income generated across its banking, wealth, investment banking, and markets businesses.
1) Net interest income (spread-based banking): A core earn...
Bank of America Earnings Call Summary
Earnings Call Date:Jul 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 14, 2026
Earnings Call Sentiment Positive
The call presented broad-based and strong financial performance across revenue, NII, fee businesses, markets, and wealth management, with meaningful operating leverage, improved efficiency and solid capital returns. Key positive metrics included double-digit revenue growth (15%), net income up 27%, EPS up 34%, strong NII performance (+9% YoY) and record GWIM/AUM outcomes. Lowlights were limited to higher absolute operating expenses due to ongoing investments, a $292 million 'All Other' loss, isolated credit losses, seasonal deposit outflows, and the risk of tougher second-half comps and operational risks from rapid AI adoption. On balance the highlights substantially outweigh the lowlights, signaling strong execution and favorable near-term outlook, though vigilance is warranted on expense discipline, credit monitoring and AI governance.Positive Updates
Strong Top-Line Growth
Total revenue grew 15% year-over-year to $31.6 billion, driven by net interest income, investment banking, wealth management fees, and sales & trading.
Negative Updates
Higher Operating Expense Year-over-Year
Non-interest expense was ~$18.6 billion, up roughly $1.4 billion YoY, reflecting continued investments in technology, sales teams, financial centers, brand marketing and higher activity-related costs in Global Markets.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue grew 15% year-over-year to $31.6 billion, driven by net interest income, investment banking, wealth management fees, and sales & trading.
Read all positive updates
Company Guidance
Management updated full‑year guidance, saying net interest income is now expected at the upper end of the prior 6–8% growth range (reflecting FTE NII of ~$16.2B this quarter, a 9% YoY increase, NIM 2.08% and a sensitivity of roughly +$1B NII for a 100 bp parallel rate shock), and raised full‑year operating leverage to 300–400 basis points after H1 outperformance (≈450 bps YTD and 6.6% in Q2); other key metrics underpinning the guidance include revenue of $31.6B (+15% YoY), net income $9.1B (+27%), EPS $1.21 (+34%), efficiency ratio improved to 59%, CET1 ~$202B (ratio 11.2%), average deposits $2.02T (+$49B, +2.5% YoY; non‑interest bearing +$19B, +4%), average loans $1.2T (+$88B, +8% YoY), ending loans $1.22T (+$71B, +6%), non‑interest expense ≈$18.6B, provisions ≈$1.4B, net charge‑offs ≈$1.4B, NPLs ≈$5.8B, and continued capital returns ($8B this quarter); management also reiterated a ~21.5% tax rate and emphasized strong liquidity, RWA ~$1.8T, and AI/technology adoption supporting sustainable revenue and efficiency gains.Bank of America Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 174.85B | 191.57B | 192.43B | 171.91B | 115.05B | 93.85B |
| Gross Profit | 110.47B | 107.42B | 96.07B | 94.19B | 92.41B | 93.71B |
| EBITDA | 42.35B | 40.01B | 31.44B | 30.40B | 32.95B | 35.87B |
| Net Income | 31.70B | 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 | 249.87B | 963.73B | 642.92B | 608.07B | 458.25B | 654.54B |
| Total Debt | 383.59B | 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 | 300.67B | 303.24B | 295.56B | 291.65B | 273.20B | 270.07B |
Cash Flow | ||||||
| Free Cash Flow | 56.57B | 12.61B | -8.80B | 44.98B | -6.33B | -7.19B |
| Operating Cash Flow | 56.57B | 12.61B | -8.80B | 44.98B | -6.33B | -7.19B |
| Investing Cash Flow | -122.60B | -145.16B | -90.69B | -35.39B | -2.53B | -313.29B |
| Financing Cash Flow | 33.03B | 69.95B | 60.37B | 93.34B | -106.04B | 291.65B |
Bank of America Technical Analysis
Positive
53.91
Price Trends
55.15
Positive
52.68
Positive
52.59
Positive
Market Momentum
1.61
Negative
63.37
Neutral
72.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAC, the sentiment is Positive. The current price of 53.91 is below the 20-day moving average (MA) of 59.14, below the 50-day MA of 55.15, and above the 200-day MA of 52.59, indicating a bullish trend. The MACD of 1.61 indicates Negative momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 72.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $913.98B | 14.57 | 17.81% | 1.79% | 8.17% | 19.76% | |
73 Outperform | $434.81B | 13.70 | 11.13% | 1.93% | -2.06% | 27.92% | |
73 Outperform | $344.57B | 16.30 | 11.41% | 4.14% | -6.12% | 12.49% | |
69 Neutral | $267.80B | 12.32 | 12.57% | 1.80% | 4.63% | 18.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $314.25B | 23.78 | 16.96% | 1.55% | 2.31% | 42.87% | |
63 Neutral | $221.84B | 13.65 | 8.39% | 1.94% | 3.91% | 37.25% |
* Financial Sector Average
BAC
Bank of America
60.42
13.95
30.03%
C
Citigroup
128.72
38.12
42.08%
HSBC
HSBC Holdings
99.01
38.37
63.27%
JPM
JPMorgan Chase
338.87
53.36
18.69%
WFC
Wells Fargo
86.33
7.77
9.90%
GS
Goldman Sachs Group
1,055.03
362.96
52.45%
Bank of America Corporate Events
Business Operations and StrategyShareholder Meetings
Bank of America Shareholders Back Leadership and Governance Status Quo
Positive
May 6, 2026
At its 2026 Annual Meeting of Shareholders held on May 4, 2026, Bank of America shareholders re-elected all director nominees, endorsed the non-binding advisory vote on executive compensation, and ratified PricewaterhouseCoopers LLP as the indepen...
Stock BuybackDividendsFinancial Disclosures
Bank of America Posts Strong First-Quarter 2026 Earnings Growth
Positive
Apr 15, 2026
Bank of America reported first-quarter 2026 results showing net income of $8.6 billion and diluted earnings per share of $1.11, up 17% and 25% year over year, respectively, on April 15, 2026. Revenue rose 7% to $30.3 billion, driven by a 9% increa...
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.