With a market cap of $303.2 billion, Bank of America Corporation (BAC) is one of the largest financial institutions in the United States. Operating through four main segments: Consumer Banking; Global Wealth & Investment Management; Global Banking; and Global Markets, it serves individual consumers, small and mid-sized businesses, large corporations, and governments worldwide.

The Charlotte, North Carolina-based company's shares have underperformed the broader market over the past 52 weeks. BAC has increased 8.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12.1%. Moreover, Bank of America shares are down 9.1% on a YTD basis, compared to SPX’s 4.4% decline. 

In addition, the nation's second-largest bank has also lagged behind the Financial Select Sector SPDR Fund’s (XLF) 20.7% return over the past 52 weeks and a marginal YTD gain. 

Shares of BAC rose 3.6% on Apr. 15 after a strong Q1 2025 earnings report that exceeded analyst expectations. The bank reported EPS of $0.90 and revenue of $27.4 billion, surpassing forecasts. Solid performance in key segments such as Global Markets, which saw an 11% rise in sales and trading revenue, and GWIM, which posted an 8% adjusted revenue increase, reinforced investor confidence.

For the current fiscal year, ending in December 2025, analysts expect BAC’s EPS to grow 11.9% year-over-year to $3.67. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters. 

Among the 23 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, four “Moderate Buys,” and one “Hold.” 

On Apr. 7, Truist Financial analyst John McDonald CFA reiterated a “Buy” rating on Bank of America and assigned a price target of $50.

As of writing, BAC is trading below the mean price target of $48.93. The Street-high price target of $57 implies a potential upside of 42.9% from the current price levels.