How to Buy Bank Of America Stock
Bank Of America Corp
Bank Of America is a diversified bank company located in North Carolina, United States, which is part of the Financial Services sector, and is traded under the ticker BAC on the NYSE exchange.
Bank Of America stock last closed at $36.43, up 0.83% from the previous day, and has decreased 21.54% in one year. It has underperformed other stocks in the Banks - Diversified industry by 0.08 percentage points. Bank Of America stock is currently +24.29% from its 52-week low of $29.31, and -27.3% from its 52-week high of $50.11.
As of Feb 3, 2023, there are 8.02B shares of BAC outstanding. The market capitalization of BAC is $292.26B. In the past 24 hours, 37.4M BAC shares were traded.
How to Buy Bank Of America Stock
Wondering how to invest in Bank Of America stock? Here's how.
- Decide where to buy Bank Of America stock: You need to choose an online brokerage, but don't worry - we've researched dozens of online brokerages and apps to help you decide where to buy Bank Of America stock.
- Open your brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've identified.
- Deposit money your brokerage account: Pick your payment method and add your info.
- Research Bank Of America stock: The Bank Of America ticker symbol is BAC. Is Bank Of America stock a good investment? Should you buy shares of BAC? How do BAC's underlying business fundamentals look? Do top analysts think Bank Of America is a good buy? Why has BAC's stock price moved recently? (Hint: Our stock market research tools can help you evaluate if BAC is a good stock to buy).
- Place your BAC buy order: Decide if you will purchase BAC shares at the current market price or use a limit order to purchase BAC stock at a specific price.
- Get notifications regarding your BAC position: Create a watchlist to track your investment in Bank Of America stock.
Step 1: Decide where to buy Bank Of America stock
You will need an online brokerage account to access the NYSE market and buy BAC stock.
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Open eToro AccountStep 2: Open your brokerage account
Now that you've selected the best brokerage, you need to fill out some personal information so you can buy BAC stock today.
How to Start a New Account on eToro
- Click here to get started.
- Input your personal details to open your new brokerage account.
- Send your data by clicking the "Create Account" button.
Step 3: Deposit money your brokerage account
Now that you have opened your account on the highest rated app to buy and sell stocks, you can securely and quickly fund your account:
Check out the tutorial below to see the process of transferring funds into your new investment account.
Step 4: Research Bank Of America stock
Once you have figured out the best place to buy Bank Of America stock, it's important to analyze their stock before you buy, so you actually comprehend the risk and opportunity.
Bank Of America shares quick numbers
BAC Due Diligence Checks
WallStreetZen was designed to help average investors perform more in-depth fundamental analysis in less time.
You can see all of the due diligence checks on BAC's stock page.
Is BAC stock undervalued?
You can use a variety of different financial metrics, analyses, models, and charts to gauge BAC's intrinsic value.
Using relative valuations ratios:
- BAC may be overvalued based on its P/E ratio of 11.46x, relative to Banks - Diversified industry P/E ratio of 1.59x
- BAC may be overvalued based on its P/B ratio of 1.08x, relative to Banks - Diversified industry P/B ratio of 1.03x
- BAC could be undervalued based on its PEG ratio of 0.88x
You can do more valuation analysis on BAC's stock here.
BAC Financial Health
Pros:
- BAC earnings of $30.89B is not sufficient to cover its interest payments.
Cons:
- BAC profit margin has gone down from 33.3% to 28% in the past year.
- BAC has a relatively high debt to equity ratio of 10.4.
- BAC's operating cash flow of $7.33B allows it to safely service it's debt of $505.79B.
- Total BAC debt is higher than 5 years ago, relative to shareholder equity.
Do analysts think it's a good time to buy Bank Of America stock
Out of 17 Wall Street analysts who track BAC, the consensus analyst rating on Bank Of America is a Buy
It's important to note that analyst ratings are not stock recommendations, nor are they financial advice.
Latest BAC Analyst Forecasts
Chris Kotowski, a top 1% analyst from Oppenheimer maintains BAC with a buy rating and raises their BAC price target from $50.00 to $53.00, on Feb 2, 2023.
John Heagerty, a top 22% analyst from Atlantic Equities downgrades BAC to a hold rating and announces their BAC price target of $40.00, on Jan 31, 2023.
Heagerty assumed coverage of Bank of America Corporation by downgrading the stock from Strong Buy to Hold and assigning a $40 price target.
Not only the is bank's interest income growth slowing, but its noninterest income will also be pressured in FY 2023, the analyst told investors.
From a macro perspective, banks typically do not do well in a recession*, Heagerty noted, concluding that the sector will recover "once there is more transparency about the depth of the likely economic slowdown."
* From here: Simply put, banks rely on consumers being willing to spend and borrow money to profit. In recessions, fewer people tend to buy cars and houses or use their credit cards. In addition, more consumers tend to run into trouble paying their debts during recessions, which can result in loan losses for banks.
Scott Siefers, a top 27% analyst from Piper Sandler downgrades BAC to a strong sell rating and lowers their BAC price target from $36.00 to $33.00, on Jan 17, 2023.
Dick Bove, a bottom 10% analyst from Odeon Capital upgrades BAC to a strong buy rating and announces their BAC price target of $38.44, on Jan 10, 2023.
Matthew O'Connor, a top 14% analyst from Deutsche Bank downgrades BAC to a hold rating and lowers their BAC price target from $45.00 to $36.00, on Jan 6, 2023.
You can dive deeper into what analysts are projecting on the Bank Of America stock forecast page.
BAC Momentum
How is BAC performing as a company?
Last year, BAC earnings were $25.88B. During the past 5 year, BAC's earnings have gone up by 11.32% per year. This was slower than the Banks - Diversified industry average of 13.72%.
Last year, BAC revenue was $92.48B. Over the past five year, BAC's revenue has increased by 1.25% per year. This was slower than the Banks - Diversified industry average of 4.41%.
You can analyze BAC's earnings and revenue performance here.
Are BAC executives and large shareholders buying or selling the stock?
In the past year, insiders at BAC have sold more shares than they have bought.
Matthew M. Koder, Pres Gl Corp Invest Banking of BAC, was the latest BAC insider to sell. They sold $7,712,137.19 worth of BAC stock on Feb 2, 2023.
Dig into more about who owns BAC stock here.
Does BAC stock generate passive income?
Bank Of America pays a dividend of 2.36%, compared to the Banks - Diversified industry's average dividend yield of 3.69%. If you owned $1,000 worth of BAC stock, you would have received $23.61 in the past 12 months.
Bank Of America dividend payments have consistently grown over the past decade and have remained stable.
Find more info about Bank Of America dividend yield and history here.
Get analysis from other traders
One of the primary reasons eToro is our top-rated brokerage is because of its social trading community.
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Step 5: Place your BAC buy order
There are two main order types:
- Market order: A market order is an order to buy or sell a security at the best available price.
Market orders are generally sufficient. - Limit order: A limit order enables you to buy or sell a security at a specific price (or better).
If you want to make sure you're buying or selling at an exact price, place a limit order.
Click the Open Trade button and eToro will execute the order.
If you want more help buying stocks on eToro, click the how to video below:
Step 6: Get notifications regarding your BAC position
Now that you own some shares in BAC, you'll want to keep up with your investment.
Put BAC on a watchlist to get the latest updates about your BAC stock.
BAC Feed
How to Buy Stock in Bank Of America
To summarize, here are the 6 steps to buy Bank Of America stock:
- Decide where to buy Bank Of America stock
- Open your brokerage account
- Deposit money your brokerage account
- Research Bank Of America stock
- Place your BAC buy order
- Get notifications regarding your BAC position
If you need a brokerage account, eToro is our favorite option.
Get Started with eToro TodayIf you want to keep an eye on your investment in Bank Of America, hit the button below to create your watchlist.
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