Should I buy Bank of America stock in 2025?

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At HelloSafe, our expert has been tracking Bank of America's performance for over three years. Every month, over a million users in the US trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Bank of America.

What is Bank of America?

How much is Bank of America stock?

The price of Bank of America stock is rising this week. The stock is currently trading at $49.21, up 1.03% over the last 24 hours and showing a strong 3.69% increase over the past week. Bank of America’s market capitalization now stands at $370.64 billion, with an average daily volume of 47.55 million shares over the past three months. The price-to-earnings (P/E) ratio is 14.69, the dividend yield is 2.20%, and the beta is 1.32. With robust fundamentals and recent technical momentum, investors should be aware that while opportunities for growth exist, the stock may also experience periods of higher volatility.

Our full analysis of Bank of America stock

After a comprehensive review of Bank of America’s latest financial reports and an in-depth analysis of stock performance over the past three years, our team has synthesized a multitude of data—spanning financial ratios, technical signals, sector trends, and competitor benchmarks—using proprietary algorithms. This multifactor approach highlights a leading institution that has consistently outperformed expectations and navigated changing markets with agility and strength. So, why might Bank of America stock once again become a strategic entry point into the US financial sector in 2025?

Recent performance and market context

Bank of America’s stock has delivered an impressive rally, setting fresh 52-week highs at $49.21 as of July 2025. The shares have returned +22.99% over the past twelve months, including a weekly gain of +3.69%. This upward surge coincides with the bank’s strong Q1 2025 performance, in which revenues of $27.51 billion and net profits of $7.4 billion both exceeded analyst expectations. The macroeconomic environment is particularly favorable: US GDP growth, moderating inflation, and a resilient labor market have reinforced consumer confidence and capital flows into financials. Furthermore, the successful completion of the Federal Reserve’s stress tests and a newly announced 8% dividend increase reaffirm Bank of America’s stability and its commitment to shareholder value. As the second largest US bank by assets, the company remains at the heart of domestic economic recovery and sector leadership.

Technical analysis

From a technical perspective, Bank of America is delivering convincing bullish signals. The stock's current RSI (14 days) sits at 79.84, indicating strong upward momentum, albeit in near-term overbought territory. The MACD shows a positive crossover with substantial bullish momentum. Key moving averages (20, 50, and 200 days) have been decisively breached and now act as support, underscored by a recent Golden Cross (MA50 > MA200) confirmed at the end of June 2025. Immediate support is identified in the $46.31–$46.47 range, while resistance is being tested near recent highs ($48.00–$49.30). Given this configuration, short- to medium-term buyers may find continuation opportunities after brief periods of consolidation—strengthened by powerful underlying trends.

Fundamental analysis

Fundamentally, Bank of America is exceptionally robust. Revenue growth remains solid, with Q1 2025 delivering a 5.9% year-on-year increase despite macro volatility. Net income grew 11% over the same period, driven by healthy consumer lending, expanding wealth management, and record growth in the trading division. The bank’s P/E ratio stands attractively at 14.69, representing both a discount to broader market averages and a premium justified by demonstrated resilience. Bank of America’s diversified business model—spanning consumer banking, investment banking, global markets, and wealth management—translates to balanced, recurring income. Its technological innovation drives both operating efficiency and new client acquisition, while a steady expansion in digital services underpins ongoing competitiveness. The 2.20% dividend yield has been further enhanced by an 8% increase, reflecting robust capital discipline and payout sustainability.

Volume and liquidity

Trading volumes remain elevated and consistent, with a 3-month average of 47.55 million shares exchanged daily. The total public float stands at 7.52 billion shares, promoting liquidity and stable price discovery. Such sustained liquidity signals market confidence, not only among institutional investors—including notable stakes from Vanguard, Berkshire Hathaway, and BlackRock—but also among retail market participants. This liquidity ensures that Bank of America’s shares remain accessible to a broad range of investors, facilitating tactical entry and exit points without significant price disruption.

Catalysts and positive outlook

• Regulatory tailwinds: Easing of capital requirements and a supportive policy environment provide room for balance sheet expansion and enhanced lending activity.
• Continued improvements in trading revenue: The company is targeting its thirteenth consecutive quarter of trading revenue growth, buoyed by robust US capital markets.
• Diversification of revenue: Growth across all core segments—consumer, wealth management, corporate banking, and trading—offers insulation from singular sector shocks.
• Dividend policy: The approved 8% dividend increase reaffirms ongoing capital strength and a strong commitment to shareholder returns.
• Digital transformation: Accelerated digitalization and investments in fintech place the bank at the forefront of next-generation banking, leveraging efficiency and scale.
• Market leadership: As the #2 US bank by assets and with an expanding global presence, Bank of America stands as a pillar within the sector, prepared to capitalize on future shifts in economic cycles and technology adoption.

Investment strategies

• Short-term tactical plays: Investors may consider entering on minor pullbacks to the $46.50 support zone, taking advantage of any technical consolidations for momentum trades.
• Medium-term growth positioning: Building a core position ahead of upcoming earnings releases or anticipated regulatory changes offers a window to capture medium-horizon catalysts, such as continued earnings growth and dividend increases.
• Long-term accumulation: For investors seeking steady blue-chip exposure, the stock’s consistent dividend growth, operational diversification, and capital resilience support adding Bank of America stock to a diversified core portfolio.
• Income-focused approaches: The newly enhanced dividend yield, combined with a history of stable distributions, may appeal to those prioritizing income as well as capital appreciation.
• Risk management: The stock's liquidity and defined technical support levels allow for disciplined use of stop-loss or trailing stop orders, reducing risk while maintaining upside potential.

The alignment of bullish technicals, improving fundamentals, and an array of catalysts underscores Bank of America’s suitability for both proactive and patient investors seeking reliable returns in the financial sector.

Is it the right time to buy Bank of America?

Bank of America’s multi-year performance and robust 2025 outlook reveal a stock whose fundamentals, technical structure, and strategic trajectory are closely aligned with sustained outperformance. Key strengths—including strong revenue and net income growth, sector leadership, prudent capital management, and accelerating digital adoption—establish the bank as a linchpin of the US financial landscape. Recent bullish trends, reinforced by a growing dividend and a clean bill of health following Federal Reserve stress tests, further justify renewed attention.

While short-term technicals signal a brief period of consolidation, the weight of current evidence—strong liquidity, rising profitability, and a resilient market position—suggests Bank of America may be entering a new bullish phase. For investors searching for a dynamic blend of growth, income, and stability from a sector leader, Bank of America seems to represent an excellent opportunity at today’s levels. Approaching the coming quarters, this iconic institution stands out as one of the most compelling and strategically positioned names in the US banking sector, offering real upside potential for attentive, forward-thinking investors.

How to buy Bank of America stock in the United States?

Buying Bank of America stock online is both straightforward and secure when using a regulated US broker. Investors can opt for two primary methods: direct spot buying, where you own the shares, or trading Contracts for Difference (CFDs), which allow for leveraged strategies on price movements. Each approach has its benefits and nuances, so understanding them is essential. For guidance on choosing the best broker for your needs, refer to the comparison tool further down this page.

Spot buying

A cash purchase of Bank of America stock means you become the direct owner of the shares, benefiting from any price appreciation and eligible dividends. US brokers typically charge a fixed commission per order, often around $5.

Example of a Gain Scenario

For example: If the Bank of America share price is $49.21, you can buy around 20 shares with a $1,000 stake, including a brokerage fee of about $5.

✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

Trading Bank of America shares via CFDs lets you speculate on the stock price’s movements without owning the underlying shares. CFD trading involves fees such as the spread (the gap between buy and sell prices) and overnight financing charges.

Example of a leveraged CFD position

For example: You open a CFD position on Bank of America shares, with 5x leverage. This gives you market exposure of $5,000 for a $1,000 stake.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, it’s important to carefully compare the fees, services, and security features of different brokers. The best method depends on your investment goals—whether you prefer to own shares for the long term, or seek short-term opportunities through leverage. For a full comparison of brokers and their conditions, see the comparison further down the page.

Our 7 tips for buying Bank of America stock

The latest news about Bank of America

Bank of America stock has risen to a new 52-week high following strong market optimism. The stock closed at $49.21, benefiting from a week-on-week increase of 3.69% and ongoing bullish sentiment among US investors. This upward momentum is supported by robust trading volume and positive technical indicators, reflecting strong demand in the American financial services sector.

The bank successfully passed the 2025 Federal Reserve stress tests, enabling an 8% dividend increase. Bank of America has been authorized to raise its quarterly dividend to $0.28 per share following its solid performance in the latest stress tests. This regulatory success underscores the bank’s resilience and capital strength, supporting long-term shareholder value and sending a constructive signal to the market.

Q1 2025 earnings surpassed analyst expectations with net profit and revenue growth. Bank of America reported a net income of $7.4 billion on revenue of $27.51 billion, up 11% and 5.9% year-over-year, respectively. The positive results exceeded analyst forecasts, reinforcing investor confidence and highlighting the bank's effective management and diversified revenue sources within the US financial landscape.

Technical signals for Bank of America indicate continued bullish conditions, highlighted by a recent Golden Cross. A Golden Cross was confirmed on June 27, 2025, with the 50-day moving average crossing above the 200-day average, further validating the stock’s strong upward trend. Momentum remains positive, as reflected by a high RSI and bullish MACD, suggesting sustained interest from US market participants.

Analyst sentiment remains favorable, with a consensus price target above current levels. US financial analysts maintain a consensus target of $50.63 for Bank of America stock, above the recent closing price. Confidence is fueled by the company’s consistent income generation, recent dividend boost, and ongoing digital innovation, positioning Bank of America as a leading choice within the US banking sector.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.