BAC Stock Analysis: Buy, Sell, or Hold?
BAC - Bank of America Corporation
$48.75
1.52 (3.22%)
▲
5d:
+1.27%
30d:
-2.13%
90d:
-11.92%
BUY
HIGH Confidence
Analysis Updated: Mar 31, 2026 12:00 AM ET
Earnings: Apr 15, 2026
13d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: BAC appears deeply undervalued. Market expects -4.0% annual earnings decline despite 21% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: BAC appears deeply undervalued. Market expects -4.0% annual earnings decline despite 21% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$85.60
Based on 9.3% avg growth
INTRINSIC VALUE TODAY
$53.15
8.3% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 11.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: BAC is currently trading at $48.75, which is considered fair relative to its 30-day fair value range of $47.07 to $50.55. From a valuation perspective, the stock is trading at a discount (Forward PE: 9.8) compared to its historical average (11.1). Remarkably, the market is currently pricing in an annual earnings decline of 4.0% over the next few years. This pessimistic expectation contrasts with the company's recent 21.2% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, BAC is in a strong uptrend. The price is approaching resistance at $49.11. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 3.2% recently.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $61.38 (+25.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, BAC is in a strong uptrend. The price is approaching resistance at $49.11. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation. The stock is showing strong short-term momentum, up 3.2% recently.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $61.38 (+25.9%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$47.07 -
$50.55
Company Quality Score
65/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
77.1%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+3.2%)
- BULLISH: Trading 25.9% below Wall St target ($61.38)
Fair Price Analysis
30-Day Fair Range
$47.07 -
$50.55
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$46.12
Resistance Level
$49.11
Current Trend
Strong Uptrend
Technical data as of
Mar 31, 2026
Fundamental Context
Forward P/E (Next Year Est.)
9.81
Wall Street Target
$61.38
(+25.9%)
Revenue Growth (YoY)
7.2%
Earnings Growth (YoY)
21.2%
Profit Margin
28.4%
Valuation Discount vs History
-4.0% cheaper
PE vs Historical
9.8 vs 11.1
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.0%
(market-implied from PE analysis)
1-Year Target
$46.80
(-4%)
2-Year Target
$44.93
(-8%)
3-Year Target
$43.13
(-12%)
3-Yr Target (if PE normalizes)
(PE: 10→11)
$48.80
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 14.5%)
$166.56
(+242%)
Base:
(SPY PE: 9.8, Growth: 14.5%)
$73.11
(+50%)
Bear:
(PE: 8.3, Growth: 14.5%)
$62.14
(+28%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (12x PE), but valuation improves significantly next year (10x PE) as earnings recover.
Trailing PE: 12.38 | Current EPS (TTM): $3.81
Bull Case
$67.75
(+43%)
Analyst growth 30.6%, PE expands to 13.6
Base Case
$61.59
(+30%)
Market implied 30.6%, PE stable at 12.4
Bear Case
$32.07
(-33%)
Severe decline -20.0%, PE contracts to 10.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 9.8 to 11.1
Stabilization Target:
$55.16
(+13.1%)
PE Expansion Potential:
+13.1%
Share & Embed Analysis
Last updated: March 31, 2026 10:45 PM ET
Data refreshes hourly during market hours. Next update: 11:45 PM
Data refreshes hourly during market hours. Next update: 11:45 PM
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Technical Signals Check
Is BAC showing a specific setup today?
Insider Activity (6 Months)
4
Buys
10
Sells
Net
INSIDERS SELLING
Recent Transactions
Bernard A Mensah
SELL
94000 shares
2026-03-12
Thomas M Scrivener
SELL
50000 shares
2026-03-05
James P Demare
SELL
83832 shares
2026-03-04
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