Is Bank of America Stock a Good Investment?
Bank of America Investment Advice | BAC |
- Examine Bank of America's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Bank of America's leadership team and their track record. Good management can help Bank of America navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Banks space and any emerging trends that could impact Bank of America's business and its evolving consumer preferences.
- Compare Bank of America's performance and market position to its competitors. Analyze how Bank of America is positioned in terms of product offerings, innovation, and market share.
- Check if Bank of America pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Bank of America's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Bank of America stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Bank of America is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Bank of America Stock
Researching Bank of America's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 62.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.26. Some equities with similar Price to Book (P/B) outperform the market in the long run. Bank of America has Price/Earnings To Growth (PEG) ratio of 2.0. The entity last dividend was issued on the 6th of December 2024. The firm had 2:1 split on the 30th of August 2004.
To determine if Bank of America is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Bank of America's research are outlined below:
| Bank of America has a strong financial position based on the latest SEC filings | |
| About 62.0% of the company shares are held by institutions such as insurance companies | |
| On 27th of September 2024 Bank of America paid $ 0.26 per share dividend to its current shareholders | |
| Latest headline from seekingalpha.com: BofA cuts rating on Huya on slow macro, regulatory pressures for core live-streaming biz |
Bank of America Quarterly Liabilities And Stockholders Equity |
|
Bank of America uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Bank of America. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Bank of America's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 16th of April 2024 Upcoming Quarterly Report | View | |
| 16th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 10th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Bank of America's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Bank of America's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2013-01-17 | 2012-12-31 | 0.02 | 0.03 | 0.01 | 50 | ||
2013-10-16 | 2013-09-30 | 0.18 | 0.2 | 0.02 | 11 | ||
2016-01-19 | 2015-12-31 | 0.26 | 0.29 | 0.03 | 11 | ||
2014-01-15 | 2013-12-31 | 0.26 | 0.29 | 0.03 | 11 | ||
2012-07-18 | 2012-06-30 | 0.14 | 0.17 | 0.03 | 21 | ||
2016-07-18 | 2016-06-30 | 0.33 | 0.37 | 0.04 | 12 | ||
2014-04-16 | 2014-03-31 | 0.05 | 0.1 | 0.05 | 100 | ||
2010-07-16 | 2010-06-30 | 0.22 | 0.27 | 0.05 | 22 |
Know Bank of America's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Bank of America is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Bank of America backward and forwards among themselves. Bank of America's institutional investor refers to the entity that pools money to purchase Bank of America's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Capital World Investors | 2024-06-30 | 68.9 M | Northern Trust Corp | 2024-06-30 | 60.8 M | Dodge & Cox | 2024-06-30 | 60.6 M | Legal & General Group Plc | 2024-06-30 | 57.5 M | Ameriprise Financial Inc | 2024-06-30 | 53.8 M | Bank Of New York Mellon Corp | 2024-06-30 | 50.5 M | Amvescap Plc. | 2024-06-30 | 45.7 M | Fisher Asset Management, Llc | 2024-06-30 | 43.5 M | Charles Schwab Investment Management Inc | 2024-06-30 | 42.8 M | Berkshire Hathaway Inc | 2024-06-30 | 1 B | Vanguard Group Inc | 2024-06-30 | 641.6 M |
Bank of America's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 346.28 B.Market Cap |
|
Bank of America's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.02 | 0.02 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.09 | 0.12 |
Determining Bank of America's profitability involves analyzing its financial statements and using various financial metrics to determine if Bank of America is a good buy. For example, gross profit margin measures Bank of America's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Bank of America's profitability and make more informed investment decisions.
Please note, the presentation of Bank of America's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Bank of America's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Bank of America's management manipulating its earnings.
Evaluate Bank of America's management efficiency
At present, Bank of America's Return On Assets are projected to increase slightly based on the last few years of reporting. The current year's Return On Equity is expected to grow to 0.12, whereas Return On Capital Employed is forecasted to decline to 0.02. At present, Bank of America's Total Current Assets are projected to increase significantly based on the last few years of reporting. The current year's Return On Tangible Assets is expected to grow to 0.01, whereas Total Assets are forecasted to decline to about 1.7 T. Bank of America's management efficiency ratios could be used to measure how well Bank of America manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 36.33 | 18.64 | |
| Tangible Book Value Per Share | 27.73 | 29.12 | |
| Enterprise Value Over EBITDA | 8.67 | 8.23 | |
| Price Book Value Ratio | 0.93 | 1.36 | |
| Enterprise Value Multiple | 8.67 | 8.23 | |
| Price Fair Value | 0.93 | 1.36 | |
| Enterprise Value | 293.7 B | 308.4 B |
Evaluating the management effectiveness of Bank of America allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Bank Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Dividend Yield 0.023 | Forward Dividend Yield 0.023 | Forward Dividend Rate 1.04 | Beta 1.325 |
Basic technical analysis of Bank Stock
As of the 9th of November, Bank of America shows the Risk Adjusted Performance of 0.1356, mean deviation of 1.06, and Downside Deviation of 1.05. Bank of America technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Bank of America's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Bank of America insiders, such as employees or executives, is commonly permitted as long as it does not rely on Bank of America's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Bank of America insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Thomas Woods over a year ago Purchase by Thomas Woods of 25000 shares of B of A | ||
Thomas Woods over a year ago B of A exotic insider transaction detected |
Bank of America's Outstanding Corporate Bonds
Bank of America issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Bank of America uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Bank bonds can be classified according to their maturity, which is the date when Bank of America has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US06051GGR48 Corp BondUS06051GGR48 | View | |
| US06051GGM50 Corp BondUS06051GGM50 | View | |
| US06051GGL77 Corp BondUS06051GGL77 | View | |
| US06051GHD43 Corp BondUS06051GHD43 | View | |
| BAC 557614 05 FEB 26 Corp BondUS06051GHB86 | View | |
| US06051GHG73 Corp BondUS06051GHG73 | View | |
| US06051GGZ63 Corp BondUS06051GGZ63 | View | |
| US06051GHA04 Corp BondUS06051GHA04 | View |
Understand Bank of America's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Bank of America's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1356 | |||
| Market Risk Adjusted Performance | 0.1834 | |||
| Mean Deviation | 1.06 | |||
| Semi Deviation | 0.7887 | |||
| Downside Deviation | 1.05 | |||
| Coefficient Of Variation | 581.96 | |||
| Standard Deviation | 1.6 | |||
| Variance | 2.56 | |||
| Information Ratio | 0.0667 | |||
| Jensen Alpha | 0.0234 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.1012 | |||
| Treynor Ratio | 0.1734 | |||
| Maximum Drawdown | 9.84 | |||
| Value At Risk | (1.47) | |||
| Potential Upside | 2.19 | |||
| Downside Variance | 1.11 | |||
| Semi Variance | 0.622 | |||
| Expected Short fall | (1.27) | |||
| Skewness | 2.33 | |||
| Kurtosis | 10.32 |
| Risk Adjusted Performance | 0.1356 | |||
| Market Risk Adjusted Performance | 0.1834 | |||
| Mean Deviation | 1.06 | |||
| Semi Deviation | 0.7887 | |||
| Downside Deviation | 1.05 | |||
| Coefficient Of Variation | 581.96 | |||
| Standard Deviation | 1.6 | |||
| Variance | 2.56 | |||
| Information Ratio | 0.0667 | |||
| Jensen Alpha | 0.0234 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.1012 | |||
| Treynor Ratio | 0.1734 | |||
| Maximum Drawdown | 9.84 | |||
| Value At Risk | (1.47) | |||
| Potential Upside | 2.19 | |||
| Downside Variance | 1.11 | |||
| Semi Variance | 0.622 | |||
| Expected Short fall | (1.27) | |||
| Skewness | 2.33 | |||
| Kurtosis | 10.32 |
Consider Bank of America's intraday indicators
Bank of America intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Bank of America stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 463318.0 | |||
| Daily Balance Of Power | 0.6545 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 45.23 | |||
| Day Typical Price | 45.19 | |||
| Price Action Indicator | 0.085 | |||
| Period Momentum Indicator | 0.36 |
Bank of America Corporate Filings
| 8th of November 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify | |
13A | 7th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
FWP | 25th of October 2024 A written communication used by offering participants to offer securities to the public or to solicit securities transactions. | ViewVerify |
F4 | 10th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Bank Stock media impact
Far too much social signal, news, headlines, and media speculation about Bank of America that are available to investors today. That information is available publicly through Bank media outlets and privately through word of mouth or via Bank internal channels. However, regardless of the origin, that massive amount of Bank data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Bank of America news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Bank of America relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Bank of America's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Bank of America alpha.
Bank of America Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Bank of America can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Bank of America Historical Investor Sentiment
Investor biases related to Bank of America's public news can be used to forecast risks associated with an investment in Bank. The trend in average sentiment can be used to explain how an investor holding Bank can time the market purely based on public headlines and social activities around Bank of America. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Bank of America's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Bank of America and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Bank of America news discussions. The higher the estimate score, the more favorable the investor's outlook on Bank of America.
Bank of America Corporate Directors
| Frank Bramble | Independent Director | Profile | |
| Susan Bies | Independent Director | Profile | |
| Thomas Woods | Independent Director | Profile | |
| Sharon Allen | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bank of America. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bank of America. If investors know Bank will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bank of America listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.10) | Dividend Share 0.98 | Earnings Share 2.76 | Revenue Per Share 11.95 | Quarterly Revenue Growth (0.01) |
The market value of Bank of America is measured differently than its book value, which is the value of Bank that is recorded on the company's balance sheet. Investors also form their own opinion of Bank of America's value that differs from its market value or its book value, called intrinsic value, which is Bank of America's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bank of America's market value can be influenced by many factors that don't directly affect Bank of America's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Bank of America's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Bank of America is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bank of America's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.