Bank of America Corporation (BAC) Stock Guide
Updated: December 02, 2021
Bull case
Revenue growth higher than the industry and sector averages
Forward dividend yield higher than the industry and sector averages
Buy analyst rating
Average analyst stock price above current stock price
Bear case
Forward P/E ratio high relative to industry peers
Forward P/S ratio high relative to industry peers

Before we start: if you're looking for BAC stock price, you can quickly find it out by visiting Finny and typing "BAC quote". If you're looking for a quick scoop on BAC stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "BAC". You'll get all this info in one place. Or you can just type "BAC news" to get the latest stock news.

Looking to buy or sell Bank of America Corporation (BAC)? Interested in getting the full scoop on BAC, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this BAC stock guide, we'll address key questions about BAC, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are BAC earnings?
2. When is BAC earnings date?
3. What is BAC dividend?
4. What is BAC dividend yield?
5. What is BAC stock forecast (i.e., prediction)?
6. BAC buy or sell? What is BAC Finny Score?
7. What are the reasons to buy BAC? Why should I buy BAC stock?
8. What are the reasons to sell BAC? Why should I sell BAC stock?
9. What are BAC key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are BAC earnings?

BAC trailing 12-month earnings per share (EPS) is $2.33.

2. When is BAC earnings date?

BAC earnings date is January 19, 2022.

3. What is BAC dividend?

BAC forward dividend is $0.84.

4. What is BAC dividend yield?

BAC forward dividend yield is 1.79%.

Analyst Predictions

5. What is BAC stock forecast (i.e., prediction)?

Based on BAC analyst price targets, BAC stock forecast is $48.20 (for a year from now). That means the average analyst price target for BAC stock is $48.20. The prediction is based on 27 analyst estimates.

The low price target for BAC is $35.00, while the high price target is $60.00.

BAC analyst rating is Buy.

Analysis

6. BAC buy or sell? What is BAC Finny Score?

Our quantitative analysis shows 4 reasons to buy and 2 reasons to sell BAC, resulting in Finny Score of 67.

7. What are the reasons to buy BAC? Why should I buy BAC stock?

Here are the reasons to buy BAC stock:

  • Bank of America is poised to succeed as a provider of retail banking and wealth management services on a nationwide scale.
  • CEO Brian Moynihan has slowly repaired years of damage while mostly staying out of the headlines.
  • Many of Bank of America's past problems were a result of poor capital-allocation decisions. The company's size (it is now too big to make material acquisitions) along with increased regulatory scrutiny reduces this risk going forward.
  • After years of facing margin pressure owing the low rates, Bank of America is finally looking forward to gradual improvement in the rate environment. Net interest yield increased from 2.19% in 2015 to 2.25% in 2016 and to 2.37% in 2017. Net interest income (NII) is also improving driven by higher rates and loan balance.
  • Further, declining expenses continue to support Bank of America’s financials. Its expense-saving plan – Project New BAC (launched in 2011) – helped improve overall efficiency and save as much as $8.0 billion in operating expenses annually till the end of 2014. Further, the same declined at a three-year CAGR of 2.6% (till 2017 end). The company continues to align its banking center network according to customers’ needs, through divestitures/consolidations of branches.
  • Moreover, Bank of America remains focused on acquiring the industry's best deposit franchise. The company’s deposit balances continued to grow, despite an overall sluggish global economic environment, at a three-year (2015-2017) CAGR of 4.6%. With steady economic growth, Bank of America’s initiatives to strengthen its deposit base will support profitability.
  • Bank of America’s sturdy capital deployment activities look impressive. In December 2017, the bank received the Fed’s approval for additional $5 billion share buyback authorization. This is in addition to its 2017 capital plan that included $12 billion share repurchase authorization and a whopping 60% dividend hike.
  • BAC quarterly revenue growth was 23.40%, higher than the industry and sector average revenue growth (17.16% and 7.55%, respectively). See BAC revenue growth chart.
  • BAC forward dividend yield is 1.79%, higher than the industry (1.08%) and sector (0.73%) forward dividend yields. See BAC forward dividend chart.
  • BAC average analyst rating is Buy. See BAC analyst rating chart.
  • BAC average analyst price target ($48.20) is above its current price ($43.81). See BAC price target chart.

8. What are the reasons to sell BAC? Why should I sell BAC stock?

Let's look at the reasons to sell BAC stock (i.e., the bear case):

  • A financial institution of this size and complexity is inherently unmanageable--it's even possible that regulators might decide to break up the company.
  • Bank of America has been cutting expenses for years, and the low-hanging fruit in this realm has been picked.
  • Digital competitors are nipping at the heels of traditional branched banks.
  • Challenges faced by Bank of America in improving fee income remain a major concern. Non-interest income declined at a CAGR of 2.6% over the last five years (2013-2017). Specifically, mortgage banking income is witnessing a drastic downtrend owing to a fall in refinancing and lower origination volumes.
  • Though Bank of America has resolved quite a many litigation issues, it still faces investigations from several federal agencies and a few foreign governments for its business conducts in the pre-crisis period. Legal expenses are expected to continue weighing marginally on the company’s bottom line in the near future.
  • BAC forward P/E ratio is 14.89, which is high compared to its industry peers’ P/E ratios. See BAC forward P/E ratio chart.
  • BAC Price/Sales ratio is 4.35, which is high compared to its industry peers’ P/S ratios. See BAC forward Price/Sales ratio chart.

Key Stats

9. What are BAC key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for BAC:

Price $44.12
Industry Banks - Global
Sector Financial Services
Average Price Target / Upside $48.20 / 9.25%
Average Analyst Rating Buy
Number of Employees 204,000
Forward Dividend Yield 1.79%
Market Cap $396.93B
Forward P/E Ratio 14.89
Price/Book Ratio 4.35
Revenue (TTM) $91.20B
YoY Quarterly Revenue Growth 23.40%
Profit Margin 33.37%

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