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NYSE:BAC

Bank of America (BAC)

56.47
+0.60 (1.07%)
as of Jun 16, 2026, 1:32:41 pm Market Open.
708 watching
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Investor Insights
star iconJun 15, 2026, 12:00 am

This summary was created by AI, based on 25 opinions in the last 12 months.

Bank of America (BAC) has demonstrated strong financial performance, reporting a 17% increase in profits and achieving its best earnings per share (EPS) in nearly two decades. Analysts express optimism about the bank's guidance and potential upside, estimating a price target as high as $62.74. Despite facing headwinds from economic concerns, such as private credit worries, experts agree that BAC is well-positioned to benefit from a favorable interest rate environment, especially if the yield curve steepens. The bank's valuation remains attractive, trading at about 11 times earnings, and is regarded as having solid fundamentals and a robust growth trajectory, making it a compelling choice in the financial sector. However, some caution against buying at current levels, suggesting a wait-and-see approach for future investments.

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Consensus
Positive
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Valuation
Undervalued
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Similar
Citi,C
HOLD
He owns more American banks than Canadian. He likes the longer term outlook for the space. Longer term BAC will continue higher.
SELL
If not BAC, what else? He has rolled over into ETFs instead of hard recommendations on an individual stock. He would recommend taking profits on BAC-N.
BUY
The Fed will either pause or even cut interest rates. The trading range of the past year will likely break-out. His taret is $36. He likes this chart. Long-term BAC will do well.
PAST TOP PICK
(A Top Pick Apr 26/18, Down 2%) Still likes it. Trades at 10x earnings, a little above book value. Pays a 2.2% dividend. They can buyback their shares and increase their dividend at a 21% payout ratio that they can easily take to 40%. They rank 1, 2 or 3 in the industries they work in like investment banking and credit cards. They have a great opportunity to grow businesses as their book value grows rapidly. BAC can--and has--endure a period of flat yield curve.
COMMENT
US banks have done better than Canadian ones, but is starting to falter because interest rates won't rise anymore. Canadian banks haven't suffered a real estate bear market as in America--and it may happen, as an American short-seller is touting. However, the Canadian banks are an oligopoly and protected by that. He prefers Canadian banks at this time in the market.
BUY
BAC vs. C. Citigroup has never fully dealt with financial crisis issues. He'd prefer BAC. It's in a much better position on the retail side. He owns Goldman and Morgan Stanley. Whole sector is cheap because of interest rates and yield curve. Please don't buy stocks with only a 6-12 month time horizon. Mortgages are an issue, housing prices, if the economy softens. Extremely well run, decent margins. (Analysts’ price target is $33.00)
BUY
He likes it. It's raised its dividends. Investors are worried about consumer debt in the U.S., but debt service capacity is there, so he's not worried.
PAST TOP PICK
(A Top Pick Mar 14/18, Down 11%) The banks have not performed as well over the last year as he thought they would. Since the lows of Christmas eve, they are doing very well, but he is now cooler on the banks (see market comment at beginning of show). He is not as enthusiastic about banks as he was. He would prefer C-N if he was buying a bank.
SELL
His advice is to take your profits now. He is negative on this sector. The banks started breaking down in late 2018. If you want to play the financials, he would go to India, such as Fairfax India and avoid the US.
HOLD
Q3 last year they made $7.2 billion. Q4 last year they made $7.3 billion. EPS is $2 and the dividend is $0.60. There is a lot of room there. He is holding as he thinks that it is more likely to see higher interest rates from here than lower interest rates. (Analysts’ price target is $33.09)
BUY
Still constructive on the name. A top pick at $12 a few years ago. They have done a great job at tightening risk controls and cost reductions. Last quarter they beat estimates. Credit quality still fine. They model EPS growth of 11% 2018-2020 and trading at 9 times 2020. Good value here.
TOP PICK
Synthetic long Buy a January 2021 $30 call option to January 2021 (costing $3.60 today). Pay for this by selling a $30 put, so you're obligated to buy BAC at $30. If BAC goes above $30, then the call option is worth something and the put will expire. If below $30, the call will expire and the put will be exercised. He can take 50 cents into his pocket immediately. He has no cash outlay. He'd get dollar-for-dollar performance on the stock between now and Jan. 2021.
PAST TOP PICK
(A Top Pick Feb 12/18, Down 6%) He's bullish U.S. banks. BAC is doing a great job of re-structuring the company by bringing down costs and growing its core businesses. Also his Top Pick today.
TOP PICK
22% payout ratio vs. 40% among Canadian banks. BAC's payout ratio and dividend are rising. They're buying back shares. It's trading close to book value, $25.13. BAC faces no legal issues other headwinds. They have great growth prospects in Merill Lynch. They're cutting costs and using technology more aggressively to grow. Remember: BAC is Buffet's largest position. (Analysts’ price target is $33.09)
BUY
US banks are still correcting, not bouncing back as much as the market. BAC has announced a strong stock buyback program. You need to buy JPM as well as BAC and Citigroup. He's looking to buy this. The street is puzzled with this sector isn't doing better. There's a lot of pent-up upside in these names. Interest rates could be a catalyst.
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