/Bank%20Of%20America%20Corp_%20branch-by%20MivPiv%20via%20iStock.jpg)
North Carolina-based Bank of America Corporation (BAC) provides various financial products and services to individuals and businesses, commanding a market cap of $308.1 billion. The financial titan is expected to announce its fiscal Q3 earnings for 2024 before the market opens on Tuesday, October 15.
Ahead of the event, analysts expect Bank of America to report a profit of $0.80 per share, down 11.1% from $0.90 per share reported in the year-ago quarter. However, the company has consistently surpassed Wall Street’s EPS estimate over the past four quarters. The company’s EPS of $0.83 successfully beat the consensus earnings estimates by 5.1% in the recent quarter.
Looking ahead to fiscal 2024, analysts expect Bank of America to report an EPS of $3.28, down 4.1% from $3.42 in fiscal 2023. Nevertheless, its fiscal 2025 EPS is expected to grow 11% annually to $3.64.
Focussing on BAC’s price performance, the stock has soared 44.9% over the past 52 weeks, substantially outperforming the S&P 500 Index’s ($SPX) 34.4% returns and S&P 500 Financials Sector SPDR’s (XLF) 36.6% returns over the same time frame.
Bank of America's market momentum is fueled by strong growth in its global wealth and investment management business, solid performance in its global markets segment, and a rebound in mergers and acquisitions that boosted investment banking fees. The bank is also pursuing an aggressive branch expansion strategy, planning to open over 165 new financial centers by 2026, with nearly 40 openings this year, to enhance customer relationships and enter new markets.
Shares of Bank of America rose in the two subsequent trading sessions after beating Wall Street’s expectations in its second quarterly earnings released on July 16.
The consensus opinion on Bank of America stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, 13 advise a “Strong Buy” rating, two recommend a “Moderate Buy” rating, and nine suggest a “Hold” rating.
The mean price target of $44.50 suggests a potential upside of 12.1% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
