Bank of America Today
Bank of America
- 52 week range
- $31.40
▼
$48.08
- Dividend yield
- 2.23%
- P/E ratio
- 16.93
- Price target
- $48.58
After Warren Buffett decided to reduce his holdings in the financial sector, with Bank of America Company New York Stock Exchange: PAC With it being one of his picks to sell, many investors in the market were weary of where the system if not the broader economy might be headed. As the Q1 2025 earnings season gets underway, other bank names may reveal a broader trend for the S&P 500 and the US economy.
Just like the results that come out Goldman Sachs Group Inc New York Stock Exchange: Aindicating a potentially better financing environment resulting from a rising bond and credit market, driven by improved credit risk and an overall view of potentially lower returns in the coming quarters. As Goldman Sachs covers more of the business cycle and capital markets, investors will get an inside look at what the consumer economy is going through today.
By focusing not only on Bank of America’s quarterly results but also on how its various sectors and key performance indicators (KPIs) performed over the past quarter, investors can come to different conclusions for the stock itself and for the broader economy as well. Starting with an examination of Wall Street analysts, here’s how Bank of America is performing in its industry and in the eyes of investors.
Wall Street acquires shares of Bank of America
There’s a reason Wall Street analysts are now expecting up to $0.92 in earnings per share (EPS) for Bank of America stock for the same quarter next year. That would be a net growth rate of 12.2% from today’s EPS level of $0.82, and landing on double-digit financial growth for a financial institution isn’t something investors come around to often.
Bank of America stock forecast today
$48.58
4.36% upModerate purchase
Based on 23 analyst ratings
| High expectations | $58.00 |
|---|---|
| Average expectations | $48.58 |
| Low expectations | $39.00 |
Details of Bank of America stock forecasts
Knowing this, it would also make sense for analysts from Barclays to retain their overweight rating on Bank of America shares as of January 2025. However, this time, these analysts also raised their ratings for the company to $58 per share, calling for an increase to 23.4% upside in terms The stock is trading today.
Now that the stock is trading at 95% of its 52-week high, market momentum appears set to give Bank of America stock another upside this year. The underlying fundamentals emerging in the quarterly results should justify these views, as investors will soon discover.
Bearish traders recognize that the economy, especially the consumer economy, has improved, as judged by the credit quality and volumes at commercial banks such as Bank of America. That’s why investors could see the 1.4% decline in short interest in the stock over the past month as a sign of bearish capitulation.
Fundamentals drive growth at Bank of America
As a commercial bank, its balance sheet is expected to contain many debt products, such as auto loans, credit cards, and mortgages. This means that if Goldman Sachs is right about its view of credit markets, the yields will fall and the value of these products will increase significantly due to the inverse relationship between them.
Overall, this would inflate the value of the bank’s balance sheet, and thus its book value per share. Given that Bank of America shares are trading at a price-to-book (P/B) of 1.4x today, the significant discount to the broader finance sector and the average stock P/B multiple of 2.6x could be exploited by investors today.
Now, this is where Bank of America is actually showing improvements in the consumer credit space and aligning the stock with the potential upside that Wall Street is calling for today. inside View quarterly earningsManagement reports the first decline in net debits in more than a year, meaning fewer credit accounts have defaulted on their obligations.
Furthermore, provisions for net credit losses also fell for the first quarter in more than a year, indicating that management has a more positive view of the future of credit markets and consumer quality. Looking at Bank of America’s residential mortgage business can give investors another indication of the economy.
Bank of America’s new residential mortgage originations increased to $6.6 billion during the quarter, an increase of 24.5% from the $5.3 billion originated during the previous quarter. Besides strengthening net originations, FICO scores on average also improved from 772 last quarter to 775 this quarter, underscoring the bullish themes behind a potential consumer market and credit market recovery.
Investors should not be surprised to see recent institutional buying activity, such as a 1.2% increase in holdings of Gateway Investment Advisers as of January 2025. This allocation has taken their net positions to a high of $93.7 million today, another bullish metric that should… Investors consider it. In commercial economics.
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