With a market cap of $349.7 billion, Bank of America Corporation (BAC) is one of the largest financial institutions in the United States. Operating through four main segments: Consumer Banking; Global Wealth & Investment Management; Global Banking; and Global Markets, it serves individual consumers, small and mid-sized businesses, large corporations, and governments worldwide.
The Charlotte, North Carolina-based company's shares have underperformed the broader market over the past 52 weeks. BAC stock has decreased 5.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 11.1%. Moreover, shares of the company are down 9.1% on a YTD basis, compared to SPX’s 10.7% return.
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In addition, shares of the nation's second-largest bank have also lagged behind the State Street Financial Select Sector SPDR ETF’s (XLF) 8.2% rise over the past 52 weeks and a 3.2% YTD gain.
www.barchart.com Bank of America shares fell 4.8% on Oct. 14 after the company reported weaker-than-expected Q3 2026 adjusted EPS of $1.08, as sales and trading revenue declined 5% to $5.1 billion and fixed-income, currencies and commodities (FICC) revenue dropped 17%. Investor concerns intensified after the bank disclosed a $1.2 billion regulatory settlement charge for failing to report more than $5 billion in suspicious transactions, alongside a consent order requiring additional anti-money-laundering oversight, while investment banking fees fell 11% to $1.8 billion.
The bank also reported unrealized bond portfolio losses rising to $109 billion from $85 billion as yields increased and weaker dealmaking and trading activity overshadowed an 8% increase in net interest income.
For the fiscal year ending in December 2026, analysts expect Bank of America’s adjusted EPS to grow 18.6% year-over-year to $4.52. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 27 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, four “Moderate Buys,” and six “Holds.”
www.barchart.com This configuration is more bullish than three months ago, with 15 analysts suggesting a "Strong Buy."
On Oct. 31, J.P. Morgan analyst Vivek Juneja maintained a "Buy" rating on Bank of America, with a $59.50 price target.
The mean price target of $62.62, representing a premium of 25.2% to BAC's current price. The Street-high price target of $72 suggests a nearly 44% potential upside.
On the date of publication, Sohini Mondal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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