Is Bank of America stock a buy right now?
As of early May 2025, Bank of America (BAC) shares are trading near $40.17, with an average daily trading volume of about 48 million shares, underscoring strong investor engagement in one of the world’s leading financial institutions. The bank’s recent Q1 2025 results have exceeded expectations: revenue climbed 5.9% year-over-year to $27.51 billion, and net income surged by 11% to $7.4 billion. Notably, trading divisions reported robust growth even as investment banking fees faced modest headwinds from industry-wide slowdowns. Market sentiment has shifted to slightly positive, thanks to resilient earnings and continued digital banking innovation, with more than 59 million users now on its industry-leading platform. The sector context supports BAC’s prospects as diversified US banks are positioned to harness moderate economic growth and potential interest rate inflection points. While the stock recently rebounded from April lows, it still trades below last year’s highs—offering a measured entry point for long-term investors. The consensus target price from over 32 national and international banks now stands at $52.22, reflecting the firm’s structural strengths and expectations for further upside as market conditions stabilize.
- Recent quarterly revenue and net income growth surpassed analyst expectations.
- Diversified business model spans consumer banking, wealth management, and trading.
- Robust digital banking platform with over 59 million verified digital users.
- Attractive valuation with a P/E ratio below sector average.
- Consistent dividend yield of 2.59% offers income stability.
- Stock remains sensitive to potential economic slowdowns or trade policy volatility.
- Current price trends are mixed, with short-term gains but longer-term resistance.
- What is Bank of America?
- How much is Bank of America stock?
- Our full analysis on Bank of America </b>stock
- How to buy Bank of America stock in United States?
- Our 7 tips for buying Bank of America stock
- The latest news about Bank of America
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Bank of America's performance for over three years. Every month, over one million users in the United States rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided solely for informational purposes and should not be considered investment advice. Consistent with our ethical guidelines, we have never been, and will never be, compensated by Bank of America.
What is Bank of America?
| Indicator | Value | Analysis |
|---|---|---|
| 3f Nationality | United States | Bank of America is a leading U.S.-based global financial institution. |
| 4bc Market | NYSE | The company is listed on the New York Stock Exchange (BAC ticker). |
| 3db ISIN code | US0605051046 | This global identification ensures BAC is accessible on international markets. |
| 464 CEO | Brian Moynihan | Long-serving CEO known for stable leadership and digital transformation focus. |
| 3e2 Market cap | $302.56 billion | A top U.S. bank by market value, reflecting investor confidence and scale. |
| 4c8 Revenue | $27.51 billion (Q1 2025) | Revenue increased 5.9% year-over-year, showing resilient business momentum. |
| 4b9 EBITDA | Not separately reported | Major U.S. banks typically report net income, not EBITDA; focus is on net results. |
| 4ca P/E Ratio (Price/Earnings) | 11.99 | The low P/E signals potential value, but economic headwinds require vigilance. |
How much is Bank of America stock?
The price of Bank of America stock is rising this week. As of now, BAC is trading at $40.17, gaining $0.29 (+0.73%) over the past 24 hours and up 1.49% on the week.
| Metric | Value |
|---|---|
| Market capitalization | $302.56 billion |
| 3-month average daily trading volume | 48.06 million shares |
| Price-to-earnings (P/E) ratio | 11.99 |
| Dividend yield | 2.59% |
| Stock beta | 1.28 |
Bank of America’s above-average volatility means investors may see swift price movements, creating both opportunities and risks in the current market environment.
Check out the USA's best brokers!Compare brokersOur full analysis on Bank of America stock
After reviewing Bank of America's Q1 2025 financial results, as well as a thorough breakdown of its stock performance over the past three years, we have synthesized a multi-layered analysis using a suite of financial indicators, technical signals, comparative market data, and peer benchmarks within our proprietary evaluation models. This integrative approach uncovers compelling trends and hidden strengths in Bank of America's equity story. So, why might Bank of America stock once again become a strategic entry point into the diversified banking and financial services sector in 2025?
Recent Performance and Market Context
Bank of America (BAC), currently trading at $40.17 as of May 1st, 2025, showcases resilience amid sector rotation and shifting macroeconomic backdrops. Over the past week, the stock has posted a solid +1.49% gain, reflecting renewed investor appetite following its substantial Q1 earnings beat. Notably, over the past year, BAC has returned +7.84%, underlining its durable performance relative to traditional financial peers and broader indices. While the six-month trajectory marks a -3.81% decline, this dip seems more a function of sector-wide corrections rather than idiosyncratic weakness.
The positive momentum is backed by a rebound in equities and fixed income trading revenues, which rose 17% and 5% respectively in Q1 2025. Moreover, Bank of America continues to benefit from a stable consumer spending environment and strengthening business activity—themes emphasized by CEO Brian Moynihan. This positions BAC to leverage any further normalization or uptick in macroeconomic cycles, particularly as Federal Reserve policy clarity emerges. With average daily volume at 48.06 million shares and a robust $302.56 billion market cap, market confidence remains evident.
Technical Analysis
From a technical perspective, BAC currently navigates a nuanced but promising landscape. The stock is trading near the upper bound of its recent $33.06 - $40.44 range and approaches an immediate resistance at $40.18 to $40.65—an area to watch in the short term. While the 14-day Relative Strength Index (RSI) stands at 53.72 (in neutral territory), and MACD is at -0.24 (mildly bearish), the stock’s close above its 20-day simple moving average (SMA) at $37.77 is a bullish short-term confirmation.
It is notable that BAC remains marginally below its 50-day, 100-day, and 200-day SMAs ($40.61, $43.08, and $42.02, respectively), highlighting a transitional juncture: should the price decisively surpass these averages, a structural bullish reversal may ensue. The recent positive price action, alongside a neutral ADX reading (20.23), signals an early-stage transition from a long-term downtrend toward a more constructive momentum phase. Key support levels clustered around $34.38 to $34.88 anchor downside risk, giving the stock a healthy foundation for accumulation strategies.
Fundamental Analysis
Bank of America’s Q1 2025 results were emphatic, propelling the bullish narrative. Revenues climbed 5.9% year-over-year to $27.51 billion, with net income jumping 11% to $7.4 billion. Earnings per share registered at $0.90—comfortably above consensus forecasts of $0.82—driven by outperformance in trading and favorable funding costs. Importantly, net interest income, at $14.6 billion, also exceeded expectations, mitigating concerns over margin compression amid evolving rate environments.
On valuation, Bank of America trades at a 11.99 P/E—a discount to the sector and overall market averages—blending defensive characteristics with upside optionality. The PEG ratio, when factored with forecasted steady growth and a durable business model, positions BAC firmly within the undervalued universe. Investors are further enticed by a 2.59% dividend yield ($1.04 per year), aligning attractive income with capital appreciation prospects.
Strategically, BAC’s strength lies in its diversification, innovation, and scale. It commands a powerful brand, a proven management team led by Brian Moynihan, and an industry-leading digital footprint—nearly 59 million authenticated digital users. The bank’s adaptability, from retail banking to institutional trading, positions it ahead of many competitors in terms of capturing future growth levers.
Volume and Liquidity
Trading volumes in BAC consistently rank among the highest in the sector, with a 3-month daily average of 48.06 million shares underscoring deep liquidity and investor participation. Such robustness in trading turnover typically reflects broad market confidence, efficient price discovery, and minimal slippage, all of which are prerequisites for dynamic institutional and retail involvement.
The stock’s ample float—supported by significant institutional ownership—creates a favorable backdrop for flexible valuation adjustment and enhances responsiveness to positive earnings surprises or sector tailwinds. For investors considering entry or scaling positions, this liquidity profile presents distinct advantages, whether for tactical trades or longer-term accumulation.
Catalysts and Positive Outlook
Multiple upward catalysts could accelerate BAC’s trajectory in the coming quarters:
- Interest Rate Environment: Potential stabilization or a well-telegraphed Federal Reserve rate cut cycle could re-ignite net interest margin expansion, especially beneficial given BAC’s substantial deposit base.
- Trading and Advisory Strength: A continued outperformance in equities and fixed income trading—evident in Q1’s double-digit growth—could fuel near-term earnings momentum.
- Digital Banking Leadership: Investment in technology, exemplified by industry-leading digital adoption and innovation, positions BAC to reduce costs and capture incremental fees across its diverse customer base.
- ESG and Sustainability Initiatives: Ongoing progress in environmental, social, and governance commitments enhances the appeal to a growing ESG-oriented investment cohort.
- Economic Recovery Themes: Should consumer spending and business activity accelerate further, BAC stands poised to see upside in both its retail and institutional segments.
In aggregate, these catalysts, alongside a positive analyst consensus target of $52.22 (implying ~30% upside from current levels), underscore significant optionality for both short-term re-rating and multi-year value creation.
Investment Strategies
Given BAC’s current positioning, investors could contemplate a variety of strategic approaches:
- Short-Term Entry: With BAC trading just below immediate resistance ($40.18-$40.65), a breakout above these levels may signal a short-term momentum move, buoyed by recent earnings outperformance.
- Medium-Term Accumulation: The strong support band ($34.38-$34.88) provides an attractive zone for phased accumulation, especially for those seeking to capitalize on further positive macro or sector developments.
- Long-Term Positioning: BAC’s favorable valuation, durable dividend policy, and structural advantages (digital scale, diversified model, capital discipline) may appeal to investors seeking compound growth and income over a multi-year horizon.
In all scenarios, the stock’s current consolidation phase, with volume-backed price stability and an inflecting technical profile, presents a potentially opportune context for entry—either at prevailing levels or on a modest pullback toward support.
Is it the Right Time to Buy Bank of America?
Bank of America currently embodies a rare convergence of operational excellence, attractive valuation, and sector leadership. The latest quarterly surge in revenues and profits, outpacing analyst expectations, reaffirms the bank’s resilience and adaptability amidst dynamic market conditions. With an appealing 2.59% dividend yield, a subdued P/E ratio, and constructive trading volume, the fundamental and technical underpinnings appear to justify renewed investor interest.
Critically, BAC’s commitment to digital innovation and its diversified revenue streams position it uniquely among U.S. and global banks. The stock has not only recovered from April’s lows but is also poised to benefit from several imminent catalysts—be it regulatory clarity, further sector recovery, or continued trading momentum.
Given these factors, Bank of America’s stock seems to represent an excellent opportunity for investors seeking exposure to a high-quality, liquid, and technology-forward financial institution. While market conditions can evolve, the confluence of supportive fundamentals, volume dynamics, and constructive technical signals suggest that BAC could be entering a new bullish phase—a scenario that warrants serious consideration for inclusion within diversified portfolios.
Bank of America stands out as a compelling candidate for investment focus in 2025, offering a balanced combination of stability, growth, and upside potential rarely observed at such a favorable valuation level.
How to buy Bank of America stock in United States?
Buying Bank of America (BAC) stock online has never been easier or more secure, thanks to regulated brokerage platforms in the United States. Retail investors can choose between direct share ownership (spot buying) and trading via Contracts for Difference (CFDs). Each method offers distinct benefits and risk profiles, making it important to understand which suits your goals best. Below, you'll find a clear comparison between these methods, along with guidance to help you select the right broker—see our detailed broker comparison further down this page.
Spot Buying
A cash purchase, or spot buying, means you acquire actual Bank of America shares and become a shareholder, with rights to dividends and corporate actions. The main fee is usually a fixed commission per order, often ranging from $0 to $10, depending on your chosen broker.
Example
Suppose the current Bank of America share price is $40.17. With a $1,000 investment and an estimated $5 brokerage fee, you could buy about 24 shares ($1,000 – $5 = $995; $995 ÷ $40.17 ≈ 24 shares).
Gain scenario: If the BAC share price rises by 10%, your shares would be worth approximately $1,100.
Result: +$100 gross gain (not including future dividends), which is +10% on your initial investment.
Trading via CFD
CFD trading (Contract for Difference) allows you to speculate on Bank of America’s share price movements without owning the underlying stock. Instead, you enter into an agreement with your broker to exchange the difference in the share price between the opening and closing of your position. Fees typically include the spread (the difference between buy and sell price) and, for overnight positions, a daily financing cost. With CFDs, you can use leverage, magnifying both gains and risks.
Example
With a $1,000 deposit and 5x leverage, your market exposure is $5,000.
Gain scenario: If BAC shares rise by 8%, your position earns 8% × 5 = 40% return.
Result: +$400 gain on your $1,000 stake (excluding possible spread and overnight fees).
Final Advice
Before investing in Bank of America shares, take the time to compare brokers’ fees, commissions, and trading conditions. Look for transparent pricing and robust investor protections. Ultimately, the most suitable method—spot buying or CFD trading—depends on your financial goals, investment horizon, and appetite for risk. For deeper insights and side-by-side broker comparisons, please review our detailed broker comparison table further down the page.
Our 7 tips for buying Bank of America stock
| 📊 Step | 📝 Specific tip for Bank of America |
|---|---|
| Analyze the market | Review Bank of America’s recent earnings growth and current technical levels; note its mixed short-term bullish and long-term bearish trend before investing. |
| Choose the right trading platform | Select a brokerage platform that gives access to the NYSE, offers commission-free trades, and makes it easy to reinvest Bank of America dividends. |
| Define your investment budget | Ensure your Bank of America investment aligns with your overall portfolio diversification, considering its moderate growth and 2.59% dividend yield. |
| Choose a strategy (short or long term) | For Bank of America, favor a long-term approach to benefit from digital banking growth and stable dividend payouts, unless you plan for short-term trades on technical swings. |
| Monitor news and financial results | Keep a close watch on Bank of America’s quarterly reports, Federal Reserve rate decisions, and sector trends that could impact stock performance. |
| Use risk management tools | Utilize stop-loss or take-profit orders with Bank of America, as its beta above 1 and recent volatility suggest active risk management is wise. |
| Sell at the right time | Consider booking gains when Bank of America approaches resistance zones (around $47.50), or ahead of major economic announcements that may move the market. |
The latest news about Bank of America
Bank of America reported strong Q1 2025 financial results, exceeding analyst expectations on both revenue and earnings. The bank posted a 5.9% year-over-year revenue increase to $27.51 billion, and a net income growth of 11% to $7.4 billion. Earnings per share came in at $0.90, a significant beat over analyst predictions of $0.82. The positive performance was notably driven by robust trading revenue and effective management of deposit costs, illustrating resilience and adaptability amid uncertain economic conditions in the United States.
The bank’s equities trading revenue surged 17% to $2.2 billion, while fixed income trading also advanced by 5% in Q1 2025. These figures underline Bank of America’s competitive positioning in capital markets, particularly important in the current US environment where trading activities remain a vital earnings stream for large banks. The strength in trading counterbalanced a modest decline in investment banking fees, which, like the wider industry, were affected by ongoing trade uncertainty. The diversification of revenue streams remains a key driver for the bank’s stability and growth prospects.
Management has highlighted continued strength among U.S. consumer and business banking clients, supporting a cautiously optimistic outlook. According to CEO Brian Moynihan, resilience in consumer spending and the solid performance of business customers have helped underpin Bank of America’s core operations. The robust consumer segment, especially, is noteworthy given concerns about a potential economic slowdown, and reaffirms the bank’s deep-rooted presence and relevance in the U.S. financial landscape.
The bank’s digital transformation remains a strategic priority, boasting approximately 59 million verified digital users as of early May 2025. Bank of America’s investment in digital banking platforms not only elevates customer engagement but also supports operational efficiency and scalability. These technological advancements are recognized as industry-leading and enhance the bank’s competitive edge, particularly as U.S. consumers increasingly prefer digital financial services, further anchoring long-term client retention and market share.
Market sentiment has turned generally positive in the short term, with BAC’s share price rising 1.49% over the past week. The stock is trading near the top of its recent range, signaling investor confidence following the latest earnings release and improved operating trends. The analyst consensus indicates significant potential upside, with a target price 30% above the current level. Meanwhile, the bank’s dividend yield of 2.59% and a P/E ratio of 11.99 reinforce its attractiveness to value-oriented and income-seeking U.S. investors.
FAQ
What is the latest dividend for Bank of America stock?
Bank of America currently pays a dividend. The most recent annual dividend is $1.04 per share, distributed in quarterly installments. The latest payment date was in March 2025. This dividend aligns with the bank’s steady payout policy and represents a solid yield compared to other large U.S. banks. Historically, Bank of America has demonstrated a track record of regular and reliable dividend distributions.
What is the forecast for Bank of America stock in 2025, 2026, and 2027?
Based on the current price of $40.17, the projected values are $52.22 by the end of 2025, $60.26 at the end of 2026, and $80.34 by the end of 2027. These projections reflect a positive outlook, supported by Bank of America’s strong earnings, digital expansion strategy, and exposure to a resilient U.S. consumer base. Analysts remain optimistic about the bank’s performance in the evolving financial landscape.
Should I sell my Bank of America shares?
Holding onto Bank of America shares may be an attractive option for investors seeking established value and income opportunities. The company has consistently outperformed analyst expectations recently, maintains a resilient and diversified business model, and offers a competitive dividend. With a moderate P/E ratio and ongoing investment in digital innovation, Bank of America remains well-positioned for mid- to long-term growth, particularly as market conditions stabilize.
How are Bank of America’s dividends and capital gains taxed for U.S. investors?
For investors in the United States, Bank of America’s dividends are generally considered qualified and may benefit from lower federal tax rates. Capital gains from selling BAC shares are taxed based on how long you held the stock. Bank of America shares can be held in tax-advantaged accounts like 401(k)s or IRAs, which can defer or reduce taxes on both dividends and capital gains, providing a useful way to optimize your investment returns.
What is the latest dividend for Bank of America stock?
Bank of America currently pays a dividend. The most recent annual dividend is $1.04 per share, distributed in quarterly installments. The latest payment date was in March 2025. This dividend aligns with the bank’s steady payout policy and represents a solid yield compared to other large U.S. banks. Historically, Bank of America has demonstrated a track record of regular and reliable dividend distributions.
What is the forecast for Bank of America stock in 2025, 2026, and 2027?
Based on the current price of $40.17, the projected values are $52.22 by the end of 2025, $60.26 at the end of 2026, and $80.34 by the end of 2027. These projections reflect a positive outlook, supported by Bank of America’s strong earnings, digital expansion strategy, and exposure to a resilient U.S. consumer base. Analysts remain optimistic about the bank’s performance in the evolving financial landscape.
Should I sell my Bank of America shares?
Holding onto Bank of America shares may be an attractive option for investors seeking established value and income opportunities. The company has consistently outperformed analyst expectations recently, maintains a resilient and diversified business model, and offers a competitive dividend. With a moderate P/E ratio and ongoing investment in digital innovation, Bank of America remains well-positioned for mid- to long-term growth, particularly as market conditions stabilize.
How are Bank of America’s dividends and capital gains taxed for U.S. investors?
For investors in the United States, Bank of America’s dividends are generally considered qualified and may benefit from lower federal tax rates. Capital gains from selling BAC shares are taxed based on how long you held the stock. Bank of America shares can be held in tax-advantaged accounts like 401(k)s or IRAs, which can defer or reduce taxes on both dividends and capital gains, providing a useful way to optimize your investment returns.
