Valued at a market cap of $336.9 billion, Bank of America Corporation (BAC) is one of the largest financial holding companies in the U.S., serving individuals, businesses, and governments worldwide. Its diverse operations span Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets, offering a comprehensive suite of financial products and services. BAC is expected to release its fiscal Q4 earnings results on Friday, Jan. 10.
Ahead of this event, analysts expect the nation's second-largest bank to report a profit of $0.79 per share, up 12.9% from $0.70 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the last four quarters. BAC exceeded the consensus EPS estimate by 3.9% in the most recent quarter.
For fiscal 2024, analysts expect BAC to report EPS of $3.27, down 4.4% from $3.42 in fiscal 2023. However, its EPS is projected to rebound with a growth of 12.2% year-over-year, reaching $3.67 in fiscal 2025.
Bank of America has risen 30.1% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 23.2% return and the Financial Select Sector SPDR Fund's (XLF) 28.2% increase over the same period.
Shares of Bank of America recovered marginally on Oct. 15 due to its better-than-expected Q3 2024 earnings of $0.81 per share, which exceeded the consensus estimate. This performance was supported by strong capital markets results, particularly a 24.5% rise in underwriting income and an 11.7% increase in sales and trading revenues. Additionally, total deposit balances rose 2.4% year-over-year to $1.9 trillion, reflecting continued growth in core banking operations. Despite declining net interest income due to higher deposit costs, the positive momentum in investment banking and trading revenues boosted investor sentiment.
Overall, analysts' consensus view on Bank of America stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 22 analysts covering the stock, 13 recommend a "Strong Buy," three suggest a "Moderate Buy," and the remaining six give a "Hold" rating. This configuration is less bullish than one month ago when the stock had 14 “Strong Buy” ratings.
As of writing, BAC is trading below the average analyst price target of $48.65.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
