Bank of America Stock Falls as Earnings Fall Short of Expectations (2024)

FAQs

Bank of America Stock Falls as Earnings Fall Short of Expectations? ›

Bank of America Stock Falls as Earnings Fall Short of Expectations. Bank of America stock was falling after the bank's earnings declined from a year ago. BofA posted a fiscal fourth-quarter profit of $3.1 billion, falling from the $7.1 billion it posted a year prior.

BofA sits on huge unrealized losses in its loan portfolio

Bank of America shareholders may also be concerned about the bank's rising unrealized losses. Since the Federal Reserve began hiking interest rates in the first quarter of 2022, the bank's unrealized losses have ballooned from $13.7 billion to $112.8 billion.

For the fiscal year ending Dec 2024 , the consensus EPS* forecast has remained the same over the past week at 3.23 and increased over the past month from 3.13 to 3.23(3.19%).

Is Bank of America stock a Buy, Sell or Hold? Bank of America stock has received a consensus rating of buy. The average rating score is A1 and is based on 50 buy ratings, 23 hold ratings, and 6 sell ratings.

BAC Stock 12 Month Forecast

Based on 23 Wall Street analysts offering 12 month price targets for Bank of America in the last 3 months. The average price target is $39.79 with a high forecast of $46.00 and a low forecast of $33.00. The average price target represents a 1.27% change from the last price of $39.29.

Bank of America Earnings Drop, Under Pressure From Higher Rates; Stock Falls. Bank of America reported a 18% drop in first-quarter profit, the latest big lender to feel the squeeze of higher interest rates.

Berkshire Hathaway (BRK. A 0.37%)(BRK. B 0.09%): Warren Buffett's Berkshire Hathaway is the largest Bank of America shareholder, with 1.03 billion shares amounting to a 13% stake. As of March 2024, it was the second-largest of Warren Buffett's stock holdings after Apple (AAPL 0.06%), worth almost $37 billion.

Based on short-term price targets offered by 22 analysts, the average price target for Bank of America comes to $38.54. The forecasts range from a low of $31.00 to a high of $46.00. The average price target represents an increase of 0.68% from the last closing price of $38.28.

BOH Financial Forecast

Next quarter's earnings estimate for BOH is $0.87 with a range of $0.84 to $0.89. The previous quarter's EPS was $0.87. BOH beat its EPS estimate 75.00% of the time in the past 12 months, while its overall industry beat the EPS estimate 60.77% of the time in the same period.

Is Bank of America a buy or sell? ›

Bank of America has received a consensus rating of Moderate Buy.

Highlights and Key Points: Bac Stock Forecast 2024-2030

Current BAC Stock Price: today, 20.05. 2024, the BAC stock price is $39.29. 2024 Predictions (as for May 15, 2024): CoinPriceForecast expects a slight upside by the end of the year within the range of $39.50–$42.2.

Revenue was down 2% year over year as higher investment banking and trading revenues were unable to offset lower net interest income. Revenue in the consumer banking segment was down 5%, and average deposits were down 7% but remain well above pre-pandemic levels.

Bank of America is forecast to grow earnings and revenue by 6.2% and 4.6% per annum respectively. EPS is expected to grow by 7.7% per annum. Return on equity is forecast to be 10.2% in 3 years.

Top Warren Buffett Stocks By Size

At the end of March, these were the top stocks in Berkshire's portfolio by number of shares: Bank of America (BAC), 1.03 billion. Apple (AAPL), 789.4 million.

Banks have broadly struggled under the weight of higher interest rates, but midsize and smaller institutions have been hit particularly hard. The decline comes just ahead of bank earnings season, which the megabanks kick off on Friday.

The intrinsic value of one BAC stock under the Base Case scenario is 48.36 USD. Compared to the current market price of 39.29 USD, Bank of America Corp is Undervalued by 19%.

As of 2024-05-15, the Fair Value of Bank of America Corp (BAC) is 16 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 38.49 USD, the upside of Bank of America Corp is -58.4%.

Bank of America stock (symbol: BAC) underwent a total of 3 stock splits. The most recent stock split occured on August 30th, 2004.