Bank of America (BAC) Buy, Sell or Hold

Bank of America (BAC)

53.65

-0.09 (0.16%)

as of Oct 2, 2026, 4:58:33 pm Market Open.

709 watching

BUY ON WEAKNESS

The U.S. banks have had a big rally with the Fed's cutting interest rates. They are a bit pricy right now. They've been buying back shares and they have had little growth.

DON'T BUY

C-N would be much cheaper. It is much more internationally focused. BAC-N is much more domestic focused. The flat yield curve and negative yields is not good for either of them. It is a tough sector to invest in.

WAIT

There is a lot of reasons why they should win relative to their peers -- wealth management and potential into Europe. The problem is interest rates are not cooperating. They have large free balances on savings and trading deposits, making them very sensitive to rate declines. He would wait for a time when there is more clarity on the direction of these rates.

COMMENT

Time to add on? A big and steady US bank -- you can expect continued performance from them. They will work their way through the flat interest rate environment. This is not an expensive stock, pays a good dividend, and has a good ROC. Yield 2.5%

DON'T BUY

It comes down to the direction of interest rates. He feels they will go lower, and the U.S. may even go negative. This will hurt the banks--look at Europe now.

HOLD

We’ve seen cyclical areas of the market, like consumer and banks, really moved on that notion. If the Fed is able to engineer a steeper yield curve, this will help BAC. Thinks that you can hold this long, and he doesn’t think it will tank. (Analysts’ price target is $35.00)

DON'T BUY

The US banks reacted well to Powell's rate cut today, but a lower rate in general means the banks will struggle with shrinking margins. BAC is the most levered to interest rates, so you don't want to own this. He sold his shares over the winter when the Fed changed direction.

COMMENT

He likes the US banks and prefers JPM, but they're all hamstrung in what they can do and acquire. They will increase dividends and buyback shares. Earnings growth will come from committing their profits to share buybacks. BAC enjoys quality earnings. Debt is fine. Sinking interest rates will squeeze their margins, but they have other businesses outside lending to offset that.

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HOLD

The challenge is this is a very low interest rate environment and that makes it tough for banks to make money. If you expect interest rates to return to normal yields, this would be a good entry level. He would not be selling here -- continue to hold.

COMMENT

The financials are a little frothy. If he was a trader, he would sell at $30. If you are long term, would hold it. It is no longer a volatile trader, but it is range bound in a $5 range.

WEAK BUY

Same thoughts as with Citibank today. Expect challenges in this space. A lot of recessionary concerns have been priced into US banks but are overdone. You could add a little at current levels.

SELL

He sold it on tightening of the federal reserve last fall. This is the most exposed bank to falling interest rates. He still owns C-N because there is more upside on it. (Analysts’ price target is $32.71)

BUY

He might buy it soon. He likes it a lot. Has a PE of 9x. Well-run and a good dividend. The yield curve is a problem, but banks will find another way to charge customers. Banks don't lose.

PAST TOP PICK

(A Top Pick Aug 30/18, Down 14%) US banking is very cheap, lots of capital. Can't compare them to European banks. Great story, buying probably at or below book value. Dividend of 2.1% and increasing. Buying back shares. Good chance to get in.

TOP PICK

Low multiple. Net interest rate income is lower, but won't collapse. Great franchise. Below book value, good yield, no legal issues, tons of capital. Yield is 2.74%. (Analysts’ price target is $33.08)

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Bank of America (BAC)