Latest news with #BAC
Business Insider
15 hours ago
- Business
- Business Insider
Bank of America Stock (BAC) Nears Record High as Pivotal Earnings Report Looms
Bank of America (BAC) is scheduled to report its Q2 2025 earnings on July 16, with analysts forecasting $0.90 per share, reflecting modest 8% year-over-year growth. I believe BAC is well-positioned to beat expectations, supported by conservative loan loss provisioning, ongoing share buybacks, strength in its Global Markets division, and higher net interest income amid slower-than-expected Federal Reserve rate cuts. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter BAC stock currently trades at $45, within striking distance of its all-time high of $47 per share. With resistance clearly set, BAC stock will need a strong catalyst to make further headway beyond $50 per share. Given the lack of clear catalysts, I remain Neutral on BAC stock. It currently trades at 1.66x tangible book value and 12.6x 2025 earnings—a valuation that's lower than peers like JPMorgan Chase (JPM), but still richer than that of many U.S. regional banks. Macroeconomic Assumptions Underpin BAC Sentiment Heading into Q2 2025, Bank of America's provisioning appears notably conservative. The bank's macroeconomic outlook assumes an unemployment rate of just below 5% by the end of 2025, remaining at that level through 2026, which is slightly more pessimistic than the Federal Reserve's projection of 4.5% for both years. Similarly, Bank of America forecasts 1% GDP growth in Q4 2025, undercutting the Fed's more optimistic estimate of 1.4%. In short, Bank of America's current reserves already reflect a cautious economic view, making it unlikely to build a significant provision in Q2 2025. The bank appears to have already accounted for a moderate economic slowdown later this year and into 2026. Q2 2025 Earnings Preview Analysts expect Bank of America to deliver earnings of $0.90/share in Q2 2025, up 8% year-over-year. This would represent a marked slowdown from the 18% annual increase observed in the first quarter of 2025. I believe the projected 8% EPS growth is overly conservative. Based on my estimates, share repurchases alone could contribute around 5% EPS growth. Additionally, Bank of America is likely to raise its net interest income (NII) guidance, as the Federal Reserve is now expected to deliver only two rate cuts in 2025, compared to the four cuts the bank had initially anticipated in its own outlook. I also expect slightly stronger performance from the Global Markets division, supported by heightened market volatility early in Q2 2025, which could contribute a paltry $0.02 per share to earnings. In summary, I expect Bank of America to modestly beat consensus earnings estimates, driven by conservative provisioning, upward NII revisions, and a slight lift from trading activity. My forecast is EPS of approximately $0.92 for Q2 2025. Bank of America Valuation Based on my projections, Bank of America is on track to deliver earnings of approximately $3.57 per share in 2025, assuming consistent 8% growth in both Q3 and Q4 of 2024. This would translate to a return on tangible book value of around 13% for the year. However, this solid profitability appears to be largely priced in, with BAC stock trading at 1.66x its tangible book value of $27.12 per share. Its 2025 P/E multiple of 12.6x is more attractive than that of large peers like JPMorgan Chase (14.6x), but still above the average for regional banks, which trade closer to 10.7x forward earnings. Looking ahead to 2026, earnings growth is expected to moderate, with no repeat of the Global Markets tailwind and potential pressure from anticipated Fed rate cuts. Given this outlook, I believe a Hold rating is appropriate for BAC at current levels. This cautious stance is also supported by Berkshire Hathaway's ongoing reduction in its BAC stake, despite the stock remaining the firm's fourth-largest holding, which comprises 10.19% of Buffett's portfolio. The limited upside potential suggests it's wise to stay neutral for now. Is Bank of America a Buy, Sell, or Hold? Turning to Wall Street, Bank of America earns a Strong Buy consensus rating based on 18 Buy and 2 Hold ratings over the past three months. Notably, not a single analyst is bearish on Bank of America. The average BAC stock price target is $49.38, implying a 9% potential upside. Limited Upside for BAC Stock Despite Solid Earnings Outlook Bank of America's macroeconomic outlook remains more conservative than the Federal Reserve's, which suggests its earnings are better insulated in the event of a slowdown in U.S. economic activity later in 2025 and into 2026. I expect BAC to slightly beat Q2 2025 earnings estimates, supported by stronger net interest income, continued share repurchases, and a modest profitability boost from the Global Markets division. That said, I remain neutral on the stock. Like Warren Buffett, who has recently trimmed Berkshire's position in BAC, I believe the bank's solid profitability is already reflected in the stock's price, which trades at 1.66x tangible book value. Lastly, while Wall Street analysts maintain a Strong Buy rating, the implied upside of just 9.59% suggests limited near-term reward for new investors at current levels.
Yahoo
a day ago
- Business
- Yahoo
Why Bank of America (BAC) is a Top Stock for the Long-Term
Building an investment portfolio from scratch can be difficult, especially if you're new to investing. It's easy to feel overwhelmed with so many different investment options out there, but focusing on stocks that are set to outperform the market over the next 12 months is an excellent place to start. Now, let's break down why adding this one exceptional stock, highlighted below, to your portfolio could be a recipe for success. Headquartered in Charlotte, NC, Bank of America Corporation (incorporated in 1874) is one of the largest financial holding companies in the United States. With total assets worth $3.35 trillion as of March 31, 2025, it provides a diverse range of banking and non-banking financial services and products through 3,681 financial centers and 14,866 automated telling machines (ATMs) across the country. Since being added to the Zacks Focus List on January 9, 2017 at $22.68 per share, shares of BAC have increased 98.68% to $45.06. For fiscal 2025, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $3.68. BAC boasts an average earnings surprise of 6.6%. Earnings for Bank of America's are forecasted to see growth of 12.2% for the current fiscal year as well. Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks like BAC offer investors a great opportunity to get into a company whose future earnings estimates will be raised, potentially leading to price momentum. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
India.com
2 days ago
- Business
- India.com
This company shares hit 5 percent upper circuit even as markets decline
शेयर बाजार में हाहाकार, अरबों डॉलर हुए स्वाहा Shares of Eraaya Lifespaces were locked in the 5 per cent upper circuit limit on Thursday, June 19, 2025, amid a negative trend in the Indian stock market. The upper circuit limit, a regulatory measure, prevents the stock from being traded above a certain price level on a given day. The counter opened gap up with a gain of 4.78 per cent at Rs 48.25 against the previous close of Rs 46.05 on the BSE. It continued the upward trend and hit the intraday high of Rs 48.35, also the upper circuit of the stock. The 52-week high of the stock is Rs 316.90 and the 52-week low is Rs 40.37. Company's Subsidiary Expands Nationwide Business The action in the shares comes as the company has informed exchanges that its subsidiary Ebix Travels has broadened its Nationwide Business Associate Centre Network. The company's BAC initiative, launched in 2024, has already led to the establishment of over 20 Business Associate Centres across India. With plans to scale up to 100 centres by the end of FY 2025-26, the company is setting ambitious goals for its future. 'The launch of our Business Associate Centres represents more than just geographical expansion – we are creating a nationwide network of innovation hubs that reflect our unwavering commitment to revolutionizing India's travel landscape,' said Naveen Kundu, Managing Director of Ebix Travels Eraaya Lifespaces Share Price History Shares of Eraaya Lifespaces has given a multibagger return of 3895 per cent in two years, a term used to describe stocks that have provided returns multiple times their initial investment. However, it has corrected 33.56 per cent in two years and 67.68 per cent in six months. The counter is in action even as benchmark indices Sensex and Nifty declined in early trade amid weak trends from global markets as the ongoing Iran-Israel conflict, which has led to geopolitical tensions and concerns about oil supply disruptions, continue to weigh on investors' sentiment. In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng were quoting in the negative territory. US markets ended on a mixed note on Wednesday.
Mint
2 days ago
- Business
- Mint
Small-cap stock below ₹50 hits upper circuit despite negative trend in Indian stock market
Eraaya Lifespaces share prices were locked in the 5% upper circuit limit during Thursday's trading session, despite a downward trend in the Indian stock market. The stock experienced positive momentum following the company's announcement regarding its subsidiary, Ebix Travels Private Limited ( which has broadened its Nationwide Business Associate Centre Network. In an official filing with the exchange, the company noted that the Business Associate Centre (BAC) initiative has successfully established over 20 Business Associate Centres throughout India, and there is a bold plan in place to grow to 100 centres by the conclusion of FY 2025–26. 'The launch of our Business Associate Centres represents more than just geographical expansion – we are creating a nationwide network of innovation hubs that reflect our unwavering commitment to revolutionizing India's travel landscape. Each BAC embodies our core values: technological excellence, customer-centricity, and empowerment of local travel professionals. This initiative is our bold step towards building a more inclusive and accessible travel ecosystem that reaches every corner of our nation,' said Naveen Kundu, Managing Director of Ebix Travels As per the exchange filing, has strategically allocated its BACs throughout Delhi, Punjab, Uttar Pradesh, Jammu & Kashmir, Rajasthan, Uttarakhand, Tripura, Jharkhand, West Bengal, Karnataka, Tamil Nadu, Madhya Pradesh, and Gujarat, guaranteeing strong nationwide coverage in both established and developing markets. In its exchange filing, the company noted that with the Indian travel sector expected to keep growing, the BAC network provides with a scalable, adaptable, and effective growth framework. As it moves towards its goal of establishing 100 centers, the company remains dedicated to empowering local entrepreneurs, raising travel standards, and promoting innovation throughout the nation. This initiative not only strengthens the operational capabilities of Ebix Travels Pvt, but it also demonstrates Eraaya Lifespaces's strategic focus on transformative, inclusive, and technology-driven business growth. Eraaya Lifespaces share price today opened at ₹ 48.25 apiece on the BSE. Over the last week, the stock increased by 13.10%. The stock has decreased by -32.74% over the past three months and has declined by -34.88% over the past year.
Mint
2 days ago
- Business
- Mint
Small-cap stock below ₹50 hits upper circuit despite negative trend in Indian stock market
Eraaya Lifespaces share prices were locked in the 5% upper circuit limit during Thursday's trading session, despite a downward trend in the Indian stock market. The stock experienced positive momentum following the company's announcement regarding its subsidiary, Ebix Travels Private Limited ( which has broadened its Nationwide Business Associate Centre Network. In an official filing with the exchange, the company noted that the Business Associate Centre (BAC) initiative has successfully established over 20 Business Associate Centres throughout India, and there is a bold plan in place to grow to 100 centres by the conclusion of FY 2025–26. 'The launch of our Business Associate Centres represents more than just geographical expansion – we are creating a nationwide network of innovation hubs that reflect our unwavering commitment to revolutionizing India's travel landscape. Each BAC embodies our core values: technological excellence, customer-centricity, and empowerment of local travel professionals. This initiative is our bold step towards building a more inclusive and accessible travel ecosystem that reaches every corner of our nation,' said Naveen Kundu, Managing Director of Ebix Travels As per the exchange filing, has strategically allocated its BACs throughout Delhi, Punjab, Uttar Pradesh, Jammu & Kashmir, Rajasthan, Uttarakhand, Tripura, Jharkhand, West Bengal, Karnataka, Tamil Nadu, Madhya Pradesh, and Gujarat, guaranteeing strong nationwide coverage in both established and developing markets. In its exchange filing, the company noted that with the Indian travel sector expected to keep growing, the BAC network provides with a scalable, adaptable, and effective growth framework. As it moves towards its goal of establishing 100 centers, the company remains dedicated to empowering local entrepreneurs, raising travel standards, and promoting innovation throughout the nation. This initiative not only strengthens the operational capabilities of Ebix Travels Pvt, but it also demonstrates Eraaya Lifespaces's strategic focus on transformative, inclusive, and technology-driven business growth. Eraaya Lifespaces share price today opened at ₹ 48.25 apiece on the BSE. Over the last week, the stock increased by 13.10%. The stock has decreased by -32.74% over the past three months and has declined by -34.88% over the past year. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
