Should I buy Bank of America stock in 2025?

Why trust HelloSafe?

At HelloSafe, our specialist has been monitoring the performance of Bank of America for over three years. Every month, hundreds of thousands of users in Canada rely on us to analyze market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Bank of America.

What is Bank of America?

How much is Bank of America stock?

The price of Bank of America stock is falling this week. As of April 30, 2025, the stock is trading at $39.49 USD, reflecting a daily drop of 1.26% and a weekly decline of 1.75%. With a market capitalization of $302.33 billion and an average three-month trading volume of 47.1 million shares, Bank of America remains a major player in the sector. The stock’s price-to-earnings (P/E) ratio stands at 11.94, its dividend yield is 2.60%, and the beta is 1.25—signaling moderately higher volatility than the overall market. Investors in Canada should note the stock’s recent price swings and weigh its potential as both a growth and income opportunity in a dynamic financial landscape.

Our full analysis on Bank of America stock

After a thorough review of Bank of America’s most recent quarterly results—analyzing its three-year equity performance, financial ratios, and competitive position—and integrating these findings through proprietary multi-source data modeling, a distinctive narrative emerges. Leveraging technical and fundamental indicators, alongside up-to-date market context and sector dynamics, the evidence converges toward a strengthening investment case for this U.S. banking giant. So, why might Bank of America stock once again become a strategic entry point into the North American financial sector in 2025?

Recent Performance and Market Context

Bank of America (BAC), as of April 30, 2025, trades at $39.49 per share, reflecting a one-year advance of 6.71%—a testament to its ability to rebound following sector-wide turmoil earlier in the year. Notably, the stock’s 52-week range spans $33.07 to $48.08, underlining its resilience amid a climate of interest rate volatility and geopolitical uncertainties.

• Market Capitalization: $302.33 billion, anchoring BAC among the world’s leading banking groups.
• Recent Price Action: While currently off summer 2024 highs, BAC’s steady recovery from February–March lows has been driven by encouraging quarterly results and positive sector sentiment.
• Positive Events: The Q1 2025 outperformance, accompanied by upward revisions to consensus earnings expectations, improved the bank’s credit outlook and attracted renewed institutional flows.
• Macroeconomic Backdrop: Despite looming recession fears and short-term contraction in certain lending categories, the U.S. economy’s unexpected robustness and a probable rate stabilization cycle by the Federal Reserve have begun to favor large-cap, diversified banks, particularly those like BAC with solid capital buffers and strong digital franchises.

Put simply, BAC’s recent operational resilience and emerging sector tailwinds seem to create fertile ground for renewed upside in the coming quarters.

Technical Analysis

A deep dive into technical signals suggests BAC could be transitioning toward a more constructive trading phase in advanced markets such as Canada and the U.S.

• Relative Strength Index (RSI): At 55.9, BAC’s RSI registers in neutral territory, implying balanced momentum and headroom for further appreciation before hitting overbought levels.
• MACD: With the MACD line (+0.3) positioned above its signal line, momentum remains modestly bullish, indicating potential for renewed upward moves.
• Stochastic Oscillator: The strong reading (94.4) technically warns of overbought conditions, warranting close monitoring. However, such readings during recovery phases often precede powerful breakouts if confirmed by volume surges.
• Moving Averages: While the 50-day ($39.3) remains under the 200-day ($43.3)—a technical "death cross" often interpreted as bearish—recent price action finds BAC consolidating above the pivotal 20-day ($38.7), suggesting a possible bottoming formation as investors look past earlier macro headwinds.
• Support & Resistance: The well-defined support at $35.03 offers a robust technical floor, while the primary resistance level at $47.44 presents a medium-term price objective.

In summary, even as longer-term averages express residual caution, BAC’s improving short-term structure and positive momentum bias signal that the stock may be entering a new bullish phase, particularly appealing for tactical buyers seeking a value-based entry.

Fundamental Analysis

Bank of America’s most recent earnings highlight the bank’s formidable position and enduring profitability:

• Revenue Growth: Q1 2025 revenue reached $27.51 billion, up 5.9% year-over-year, propelled by interest income outperformance and diverse fee-generating activities.
• Earnings Expansion: Net income climbed to $7.4 billion (+11% y/y), translating to EPS of $0.90 versus consensus expectations of $0.82—demonstrating operating leverage and prudent risk management.
• Valuation: BAC trades at a trailing P/E of just 11.94, substantially below both its five-year average and current S&P 500 levels. The PEG and P/S multiples also remain attractive relative to peers, supporting the argument for a valuation re-rating as earnings momentum resumes.
• Dividend Policy: With a well-covered 2.60% dividend yield and quarterly payouts ($0.26 per share), BAC aligns with Canadian investors’ appetite for stable income.
• Business Diversification: Equities and fixed-income trading revenue both expanded (+17% and +5% y/y, respectively), offsetting marginal softness in investment banking fees—demonstrating the bank’s ability to generate profits in varied market environments.
• Strategic Strengths:
• A 59-million-strong digital user base, leading U.S. banking innovation and client retention.
• Growing presence in wealth management as affluent clients demand sophisticated advisory solutions.
• Strong brand recognition and nationwide branch presence, providing both stability and market share.

Collectively, these factors imply that BAC’s valuation appears undemanding, given its earnings quality and sector leadership.

Volume and Liquidity

BAC’s average daily trading volume stands at 47.1 million shares—an exceptional level indicative of both retail and institutional confidence in the bank's prospects.

• Liquidity: Tight bid-ask spreads and deep market participation reinforce price stability even during periods of heightened market volatility.
• Float Dynamics: Large, freely traded float reduces the risk of price manipulation and supports dynamic price discovery, allowing for fair value realization as new information is digested by the market.

The sustained high liquidity profile not only signals persistent investor engagement but also creates a favorable environment for new capital inflows and efficient trade execution.

Catalysts and Positive Outlook

Several impending catalysts could provide upward impetus for BAC shares in 2025:

• Digital Banking Expansion: Continued investment in mobile and online platforms enhances user experience, lowers costs, and attracts younger demographics, potentially driving transaction and deposit growth.
• Cost Management Initiatives: Proactive efforts to optimize operating efficiency—through automation, AI-powered customer service, and branch rationalization—improve margins and unlock shareholder value.
• Federal Reserve Policy: The anticipated stabilization (or possible easing) of interest rates could reinvigorate loan demand, benefit net interest margins, and increase corporate lending activity.
• ESG Leadership: BAC’s measurable progress toward sustainability, commitment to green bond issuance, and transparent ESG reporting elevate its appeal to an expanding cohort of ethical investors, particularly in ESG-sensitive Canadian markets.
• Mergers and Strategic Partnerships: While no major acquisitions are currently announced, the bank’s size and financial flexibility position it to capitalize strategically on potential M&A opportunities or fintech collaborations that could accelerate service innovation or expand market reach.
• Resilient Consumer and Wealth Segments: As the U.S. job market remains firm and discretionary spending recovers, BAC’s consumer and wealth management divisions stand to benefit from accelerating deposit flows and asset inflows.

Together, these drivers enhance the multi-year growth runway and underpin optimism for sustained earnings quality and shareholder returns.

Investment Strategies

For investors seeking to identify favorable entry scenarios, BAC offers several compelling angles:

• Short-term Positioning: Aggressive buyers may view recent consolidation near $39 as a tactical opportunity, targeting rebounds toward $43–$47, especially if technical momentum strengthens or positive macro data emerges.
• Medium-term Outlook: Investors can leverage the wide support base near $35 as a risk-mitigation line, appreciating that a break above intermediate resistance ($43.3 long-term MA) could set the stage for a broader uptrend, supported by improving sector conditions and anticipated earnings growth.
• Long-term Perspective: BAC’s compelling valuation, industry leadership, and ongoing transformation initiatives (digitalization, ESG, client-centric advice) build a case for patient accumulation, targeting substantial upside as the bank executes on its growth roadmap and reaps the benefits of structural sector evolution.

For Canadian investors in particular, BAC provides:

• Diversification from Canadian financial markets and currency exposure to the world’s largest economy.
• An opportunity to participate in robust U.S. dividend streams, particularly advantageous for registered accounts exempt from U.S. withholding taxes via tax treaties.

Ultimately, identifying a technical low—such as a retest of the $35–$37 range—or initiating a position ahead of a quarterly earnings catalyst could prove prudent as the market begins to anticipate and price in the next chapter of growth.

Is It the Right Time to Buy Bank of America?

Synthesizing these findings, several factors clearly justify a renewed look at Bank of America for 2025:

• Fundamental Strength: Outstanding earnings momentum, sector leadership, disciplined cost control, and diversification.
• Valuation Appeal: Reasonable P/E ratio and above-market dividend yield—both attractive in the context of low-to-moderate sector risk.
• Technical Potential: Neutral-to-positive momentum indicators and robust support levels suggest limited downside risk against considerable upside, especially as macro headwinds abate.
• Strategic Catalysts: Ongoing digital transformation, exposure to rising consumer wealth, credible ESG strategy, and the ability to leverage changing regulatory trends.

With analysts projecting nearly 23% upside to consensus price targets and BAC’s fundamentals painting a picture of durable growth, the stock seems to represent an excellent opportunity for investors aiming to capitalize on the continued strength of U.S. financial institutions. The confluence of robust financials, increasing volumes, a favorable risk-reward profile, and multifaceted growth catalysts arguably sets the stage for Bank of America to enter a promising new bullish phase, deserving of serious consideration for inclusion in diversified portfolios, especially for those focusing on high-quality, blue-chip exposure within the North American financial sector.

In this landscape, Bank of America stands out not simply as a defensive holding, but as a dynamic and resilient value proposition—one that continues to offer compelling upside for investors positioning ahead of the next market cycle.

How to buy Bank of America stock in Canada?

Buying Bank of America (BAC) shares online has become simple, accessible, and secure for Canadian investors. With a regulated broker, you can purchase BAC stock either directly ("spot buying") or through derivatives such as Contracts for Difference (CFDs). Spot buying means owning shares in your name, while CFDs allow for leveraged trading without physical ownership. Each method suits different investment styles and goals. Choosing the right broker can impact your costs and user experience—a comprehensive broker comparison is available further down this page to help you make an informed decision.

Spot Buying

A cash (spot) purchase of Bank of America stock means you are buying actual shares in your name through a regulated broker, typically listed on the New York Stock Exchange and priced in U.S. dollars. As a Canadian investor, your broker may charge a fixed commission per order, often ranging from $5 to $10 CAD, plus a small currency conversion fee if paying in Canadian dollars.

Example

Suppose the Bank of America share price is $39.49 USD. With a $1,000 USD investment (about $1,365 CAD based on current exchange rates), and accounting for a standard $5 USD brokerage fee, you can buy approximately 25 shares ($1,000 - $5 = $995 / $39.49 ≈ 25 shares).

Gain scenario

If the share price rises by 10%, your 25 shares are now worth $1,100 USD in total.
Result: +$100 gross gain, or +10% on your original investment (excluding any currency effects or taxes).

Trading via CFD

CFD (Contract for Difference) trading involves speculating on Bank of America’s price movements without buying the actual shares. With CFDs, you can use leverage—meaning you control a much larger position with a smaller amount of capital. Fees typically include the spread (the difference between buy/sell prices) and overnight financing charges if you hold positions beyond one day.

Example

You open a CFD position on Bank of America with a $1,000 USD stake and 5× leverage. This means you gain exposure to $5,000 worth of BAC shares.

Gain scenario

If Bank of America shares rise by 8%, your CFD position increases 8% × 5 = 40%.
Result: +$400 gain on your $1,000 investment, before fees and overnight charges.

Final Advice

Before investing, it’s essential to compare brokers’ fees, trading platforms, and conditions—costs can vary depending on the method and provider. Consider your investment objectives: spot buying is ideal for long-term investors seeking ownership and dividends, while CFDs suit those looking for flexible, short-term strategies with higher risk potential and leverage. Your choice should reflect your financial goals and risk tolerance. For a clear overview of available offers and costs, consult our broker comparison further down this page.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Bank of America stock

The latest news about Bank of America

Bank of America posts Q1 2025 earnings beat, with robust growth in key business lines. In the most recent quarterly results, Bank of America reported revenue of $27.51 billion, up 5.9% year-over-year, and net income of $7.4 billion, representing an 11% annual increase. Earnings per share reached $0.90, outpacing the consensus estimate of $0.82. Particularly notable for Canadian analysts is the continued growth in the equities trading segment, which saw revenue surge 17% year-over-year to $2.2 billion, and resilient performance in fixed income trading and wealth management. These results signal the underlying strength of Bank of America’s diversified business model and are associated with improved risk management, as loan loss provisions remained better than expected. This strong earnings momentum provides a solid foundation for share price stability and future growth potential—important considerations for Canadian investors assessing exposure to U.S. banking stocks.

Bank of America’s digital banking expansion enhances North American reach and cross-border relevance for Canadians. The bank’s ongoing investment in its digital banking platform now serves approximately 59 million verified users, bolstering operational efficiency and customer engagement. Canadian residents interested in cross-border banking benefit from the digitalization of account management, as Bank of America apps and online tools facilitate easier handling of U.S.-denominated accounts and cross-border services frequently used by snowbirds, business owners, and those with family ties in the United States. This enhanced digital interface aligns with shifting customer preferences, supports the bank’s resilience in the face of market uncertainty, and underscores its competitive positioning in North America—a positive signal for both U.S. and Canadian stakeholders.

Technical indicators present a mixed but constructive outlook, with bullish momentum offset by a bearish moving average cross. Recent trading data show a neutral-to-positive sentiment: the Relative Strength Index (RSI) stands at 55.9 and the MACD remains in bullish territory, indicating potential for upward movement in the near term. However, a technical caution arises from the “death cross,” where the 50-day moving average has dipped below the 200-day moving average, historically a bearish indicator. Despite this, strong underlying fundamentals and positive earnings may override short-term technical weakness, helping support the stock as it approaches key support around $35 and resistance near $47.44. Canadian investors, often sensitive to broader North American market signals, will find these technical dynamics important in guiding entry and exit strategies.

Bank of America maintains an attractive dividend yield and is accessible for Canadian investors seeking U.S. dollar income. With a current yield of 2.60% and quarterly payments of $0.26 per share, Bank of America offers appealing income generation compared to Canadian bank stocks whose yields may fluctuate with local monetary policy. For Canadians holding U.S.-listed shares in U.S. dollar accounts—such as those available through major Canadian brokerages—this dividend can supplement portfolio income while providing diversification outside the Canadian financial sector. Notably, the ex-dividend date of June 6, 2025, may drive interest from income-focused investors in Canada seeking to capture upcoming distributions.

Analyst consensus remains bullish, projecting potential upside for BAC that supports cross-border portfolio allocation. Expert price targets for Bank of America stand at $48.57, implying an approximate 23% upside from current levels. Most analysts maintain a “Buy” or “Overweight” recommendation, citing robust earnings, effective capital allocation, and a balanced revenue mix as key supporting factors. This broadly positive sentiment echoes across North American markets, encouraging Canadian portfolio managers and retail investors to consider Bank of America as a core holding for U.S. financial sector exposure. The stock’s reasonable price-to-earnings ratio and record of weathering economic uncertainty further reinforce its suitability for Canadian investors seeking stable long-term growth and income.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.