Bank of America Stock: Is It Time to Buy, Sell, or Hold
For a good reason, Bank of America stock (BAC) has long been on investors’ radar. As one of the biggest names in the banking world, it’s not just a major player in the market; it’s also a key barometer for the entire financial sector. With a market cap north of $300 billion, Bank of America ranks as the second-largest U.S. bank, just behind JPMorgan Chase (JPM), and sits comfortably among the country’s top 30 publicly traded companies.
Because of its size and influence, Bank of America attracts attention from investors looking for stability and growth. With economic conditions constantly shifting, plenty of people are now curious: Is this banking giant a buy, sell, or hold?
What Analysts think about Bank of America Stock: Sentiment and Price Targets
To get some answers, let’s see what the experts think. Here’s a look at the latest analyst recommendations, courtesy of Seeking Alpha.
Over the last 90 days, 22 analysts have issued updates on Bank of America Stock, with 12 Strong Buys (55%), 7 Buys (32%), and 3 Holds (14%). This is well above our hurdle of 75% Buy recommendations.
As you can see, while analysts have generally been positively inclined toward BAC’s prospects, the consensus has been getting more and more positive, especially in 2025.
Let’s look at price targets, again courtesy of Seeking Alpha:
Currently, the stock is trading at around 41 USD, the average price target is around 53 USD or a little less
than 30% upside. Moreover, the lowest price target is 43 USD or 4% upside. Yes, stock analysts really like
the company. What is also attractive in this case is that BAC is a company that usually reaches its
average price target and, in our opinion, has a realistic chance of doing so again.
Investor Sentiment, Valuation, and Final Thoughts
Let’s see how investors feel about the company, courtesy of finviz.com:
Only 1.03% of shares outstanding are shorted (short float). This is really great news – nobody, or practically nobody, is betting on a downside in BAC.
However, institutional ownership rate is not that great. While it is above our hurdle rate of 70% and it is only around 75%.
We would have liked to be above 80% or even 85%. This is just a warning flag, not enough to abandon the long trade idea but something to considered when sizing the position.
Finally, let’s look at the valuation, courtesy again of finviz.com:
From a valuation perspective, BAC appears particularly attractive. With a forward PE ratio of 9.1 and a 3-5 year earnings growth rate of 14.91%, BAC’s forward PEG ratio stands at 0.61 — far lower than the sector benchmark. By comparison, XLF, S&P500 Financial Services ETF, has a forward PE ratio of 16.13 and 3-5 yr earnings growth rate of 11.27%.
That would make a forward PEG ratio for the ETF at 1.43. Also, P/B for the ETF is at 2.28. BAC’s valuation is indeed very cheap, especially compared to XLF.
Final Thoughts
In short, Bank of America stock presents a compelling value investment case. With a combination of analyst support, attractive valuation metrics, and positive sentiment, BAC appears poised for potential upside of 30% or more. Adding to this bullish case is Warren Buffett’s strong endorsement — with 11% of his portfolio invested in Bank of America, and given his ample cash reserves, it wouldn’t be surprising if he’s adding to his position now.