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Charlotte, North Carolina-based Bank of America Corporation (BAC) is a leading financial holding company with a market cap of $374 billion. It offers a range of financial products and services to individual consumers, small and mid-market businesses, institutional investors, large corporations, and government entities.
Companies valued at $200 billion or more are typically classified as “mega-cap stocks,” and BAC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the banks - diversified industry. The company’s strength lies in its scale, diversified business model, and strong brand, making it one of the most systemically important banks in the U.S. Its specialty is providing a full suite of financial services across consumer banking, wealth management, corporate banking, and capital markets.
This banking giant touched its 52-week high of $50.64 in the last trading session. Moreover, it has surged 14.6% over the past three months, outpacing the Financial Select Sector SPDR Fund’s (XLF) 5.8% uptick during the same time frame.
In the longer term, BAC has rallied 26.4% over the past 52 weeks, outpacing XLF’s 19.8% return over the same time period. Moreover, on a YTD basis, shares of BAC are up 14.9%, compared to XLF’s 11.4% return.
To confirm its bullish trend, BAC has been trading above its 200-day and 50-day moving averages since early May, with slight fluctuations.
Shares of BAC tumbled marginally on Jul. 16, after reporting mixed Q2 results. The company’s total revenue, net of interest expense, grew 4.3% year-over-year to $26.5 billion, but fell short of the consensus estimates by a slight margin. Nonetheless, this revenue miss was cushioned by the bank’s fourth consecutive quarter of sequential net interest income growth and a 7.2% annual rise in EPS to $0.89, which topped Wall Street estimates by 3.5%.
However, BAC has lagged behind its rival, JPMorgan Chase & Co. (JPM), which soared 35.8% over the past 52 weeks and 25.4% on a YTD basis.
Given BAC’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 26 analysts covering it, and the mean price target of $53.36 suggests a 5.7% potential upside from its current price levels.
