Key Stats for Bank of America Stock
- Past-Week Performance: +1%
- 52-Week Range: $33 to $58
- Current Price: $50
What Happened?
Bank of America stock (BAC) finds itself in an interesting position right now, trading at $50.41 after sliding 1.3% on yesterday as Wall Street’s AI disruption fears triggered a broad financial sector selloff that punished BAC harder than the S&P 500’s modest 0.7% gain would suggest.
The immediate trigger arrived when Anthropic unveiled new AI tools on February 25 specifically targeting investment banking and private equity tasks, sending the S&P 500 Financials sector down 0.4% even as the broader index climbed, with BAC extending a two-day losing streak that began February 23 when the sector fell 2.8% on UBS warnings about AI-driven credit disruption.
Compounding the selling pressure, Berkshire Hathaway filed a 13F on February 17 revealing it had trimmed its BAC stake by 8.9% to 517.3 million shares in Q4, while Viking Global slashed its position by 60.9% to just 4.5 million shares, adding institutional weight to the bearish short-term narrative.
Yet beneath the surface volatility, the market is quietly re-rating BAC from a pure rate-sensitive play into a diversified earnings machine, as its $30.5 billion full-year profit, a $25 billion private credit commitment, and an expanded BofA Rewards loyalty program collectively signal a bank building durable revenue streams beyond the interest rate cycle.
CEO Brian Moynihan stated at the February 10 Financial Services Conference that “consumers in January spent 5% more money at Bank of America pushed in the economy than last year’s January,” framing BAC’s internal spending data as hard evidence that the U.S. consumer remains resilient despite persistent sentiment-driven fears.
On the institutional side, BofA’s own research desk raised its price target on Construction Partners on February 25, signaling internal conviction in earnings momentum, while the bank’s credit metrics reinforced the bull case with a credit card delinquency rate of just 1.0% and a charge-off rate of 2.2% as of January’s end.
Looking further out, BofA’s simultaneous moves into private credit, AI-powered banking through its 20-million-user Erica platform, and an expanded wealth management NNA growth target of 4% to 5% position it to compete across multiple high-margin financial verticals over the next three to five years, making today’s AI-driven selloff look less like a structural warning and more like a tactical entry point.
Wall Street’s Take on BAC Stockt
The AI-driven selloff that pushed BAC down to $50.41 obscures a bank that just delivered $30.5 billion in full-year profit, committed $25 billion to private credit, and guided for 5% to 7% NII growth in the year ahead.
The fundamental case strengthens further when examining the earnings trajectory, with consensus estimates projecting normalized EPS rising from $3.8 in 2025 to $4.4 in 2026, representing 14.2% year-over-year growth as NII repricing and operating leverage compound into the bottom line.
Also consistently, Wall Street stands firmly behind that growth story, with 15 analysts rating BAC a Buy and the mean price target sitting at $62.5, representing 24% upside from the current $50.41 close, based on 24 estimates tracked as of February 24.
The target range itself tells a compelling story, spanning from a Street low of $56.0 to a high of $71.0, meaning even the most cautious analysts see meaningful upside from current levels while bulls price in a full re-rating.
What Does the Valuation Model Say?
A TIKR mid-case valuation model, built against the backdrop of BofA’s private credit expansion and wealth management NNA growth target of 4% to 5%, prices BAC at $71.5 with a 41.9% total return and a 7.5% annualized IRR through December 2030.
The primary risk is multiple compression, as the model itself projects a 3.0% annual P/E contraction through 2031, meaning BAC must grow earnings fast enough to overcome a valuation ceiling that the market may continue to impose on large-cap banks.
At $50.41, trading at a 24% discount to the Street mean and with earnings momentum accelerating, BAC looks meaningfully undervalued for investors willing to look past near-term AI disruption noise toward a fundamentally stronger bank.
Should You Invest in Bank of America Corporation?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up BAC stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
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