Should I buy Bank of America stock in 2025?

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At HelloSafe, our expert has been monitoring the Bank of America share price for over three years. Every month, tens of thousands of users in Singapore rely on us to analyze market trends and highlight the best investment opportunities available. Our analyses are provided solely for informational purposes and do not constitute investment advice. In line with our ethical charter, we have never received, and will never accept, any compensation from Bank of America.

What is Bank of America?

How much is Bank of America stock?

The price of Bank of America stock is rising this week. As of now, BAC trades at USD $41.60, registering a daily gain of 1.64% but posting a weekly decline of 1.29%. The company’s market capitalization stands at $313.33 billion, with a 3-month average daily volume of 47.49 million shares.

Given its moderate volatility and consistent dividends, BAC may appeal to Singapore investors seeking diversified exposure to the US banking sector.

Our full analysis on Bank of America stock

We have thoroughly reviewed Bank of America’s (BAC) latest financial statements, integrating its share price performance over the past three years with a robust mix of financial metrics, technical indicators, industry positioning, and dynamic market data—leveraged through our proprietary analytical frameworks. By synthesizing consensus analyst insights, competitive benchmarking, and macroeconomic drivers, we are equipped to present an in-depth perspective on BAC’s investment thesis. So, why might Bank of America stock once again become a strategic entry point into the global financial sector in 2025?

1. Recent Performance and Market Context

Strong Recovery and Robust Fundamentals

The current trading price of Bank of America stands at $41.60 (as of May 9, 2025), representing a notable +10.32% gain over twelve months, despite exhibiting near-term volatility with a -7.82% change over the last six months. This rebound is underpinned by a series of positive quarterly results and continued business innovation. Although weekly movements have been slightly negative (-1.29%), the overall trajectory confirms the resilience of BAC’s diversified operations in an evolving interest rate environment.

Recent Positive Events Catalyzing Momentum

• Q1 2025 financial results surpassed expectations: Bank of America posted net income of $7.4 billion (+11% YoY) and revenue of $27.4 billion, exceeding analyst EPS forecasts by 9%—a testament to earnings quality and operational efficiency.
• Record trading revenue: Equity trading revenue grew by 17% to $2.18 billion, highlighting the bank’s competitive strength in capital markets.
• Dividend reinforcement & buybacks: BAC has announced its next quarterly dividend ($0.26/share), and its share repurchase program has supported price stability.
• Market sentiment: The banking sector, including BAC, has benefited from renewed risk appetite, as the Federal Reserve signals a potentially steady rate environment. This has led major bank stocks to rally, further restoring investor confidence.

A Favorable Sector Backdrop

Banking remains a foundational component within the S&P 500 and global indices—particularly relevant for Singapore-based investors seeking U.S. financial exposure. U.S. economic resilience, solid consumer spending, and a stabilizing inflation outlook brighten the sector’s long-term prospects. Moreover, BAC’s robust capital base ($806.39 billion in cash) and broad geographic footprint offer a natural hedge against localized shocks, making its recovery all the more compelling in relative and absolute terms.

2. Technical Analysis

Indicators Pointing to Renewed Upside

Technical readings for BAC as of early May 2025 signal an improving posture:

• RSI (14): 61.70—indicative of strength but not yet in overbought territory.
• MACD (12,26): 0.42—showing positive momentum building.
• Moving Averages: BAC currently trades above its 20-day, 50-day, and 200-day EMAs (bullish), while $41.60 remains just below its 100-day EMA. The clustering of buy signals (10 vs 2 sell signals) from moving averages offers further confirmation that upward momentum could accelerate.

Well-Established Support and Strategic Levels

• Key support levels—$40.75, $40.56, and $40.27—have consistently held through recent trading sessions, acting as launchpads for subsequent rallies.
• Resistance is clustered near $41.23, $41.52, and $41.71; breakthroughs above these could catalyze a renewed bullish phase, given volume support.
• The 52-week trading range ($33.07–$48.08) provides ample headroom for appreciation, particularly with the consensus analyst target at $48.57 (+30% potential upside).

Momentum and Short-/Medium-Term Structure

BAC’s technical structure suggests that recent consolidation could serve as a springboard for further gains, particularly as MACD and EMAs trend bullish. For momentum- and swing-traders, such structures frequently preempt extended upward moves—especially when coupled with positive earnings surprises and sector rotation into financials.

3. Fundamental Analysis

Consistent Revenue Growth and Profitability

• Q1 2025 net income expanded by 11% YoY, with total revenue (TTM) reaching $97.45 billion.
• Strong Return on Equity (ROE) of 9.46% and Return on Assets (ROA) at 0.84% reflect best-in-class capital stewardship amid volatile interest rates.
• Equity trading and consumer banking divisions continue to outperform, insulating overall results from cyclical slowdowns elsewhere.

Attractive Valuation Relative to Peers

• P/E Ratio: 12.42—not only below the S&P 500 average but extremely attractive among global financials for a big-bank stock.
• PEG Ratio: 1.57, signifying that forecasted growth is reasonably priced.
• Dividend yield at 2.5% provides a reliable income stream, a characteristic often favored by Singaporean investors seeking both yield and long-term capital gain exposure.

Structural Strengths and Competitive Advantages

• Bank of America’s diversification cuts across consumer banking, global wealth management, and investment banking, mitigating single-sector exposure risk.
• Digital leadership: With ~59 million verified digital users, BAC is a trailblazer in digital banking among legacy U.S. banks.
• Operational scale: The institution supports ~69 million consumer and small business clients and operates in 35+ countries, underlining its systemic importance and ability to drive earnings growth independent of regional shocks.

4. Volume and Liquidity

Sustained High Trading Volume

• 47.49 million shares average daily volume underscores deep liquidity, enabling efficient entry and exit for investors of all sizes.
• High liquidity reflects sustained institutional interest and board-level buyback activity, both of which are positive confidence indicators for retail and global investors.

Favorable Float and Dynamic Valuation Potential

• Public float of 7.52 billion shares and a relatively modest short interest (1.26% of float) help maintain price discovery efficiency and minimize the risk of dramatic, unsupported price swings.
• This robust float creates an ideal backdrop for price appreciation during upward revaluations triggered by catalysts—whether internal operational wins or macroeconomic shifts.

5. Catalysts and Positive Outlook

Compelling Catalysts on the Horizon

• Product and market expansions: The bank continues investing in advanced digital platforms, ESG-aligned lending, and cross-border financial solutions, laying the groundwork for future revenue streams.
• Shareholder returns: Ongoing share repurchases and increasing dividend distributions provide a dual engine for capital appreciation and shareholder yield.
• ESG initiatives: BAC remains committed to sustainable finance and inclusive growth, which is increasingly prioritized by institutional investors globally, including those in Asia-Pacific.

Macro Tailwinds Working in BAC’s Favor

• Interest rate normalization: Even with short-term volatility, a steady rate environment typically supports net interest margin expansion—a key driver for bank profitability.
• Regulatory outlook: While regulatory scrutiny persists, BAC’s proactive governance and transparency culture position it as a compliance leader, reducing headline risk.
• Consensus upward revisions: Sell-side analysts’ average price target of $48.57 (c. 30% above current) reflects broader recognition of BAC’s operational upside and underlying value.

6. Investment Strategies

Multi-Horizon Opportunity

• Short-term traders: Rally potential is evident as BAC approaches and breaks resistance levels, supported by bullish technicals and surprise Q1 results.
• Medium-term investors: The current price consolidation below the 100-day average affords an attractive entry, especially ahead of further corporate announcements, dividend events, or broader sector rotation.
• Long-term holders: BAC’s combination of dividend yield, structural resilience, global scale, and digital leadership creates a foundation for compounding returns over the cycle—a particularly relevant theme for Singapore-based long-horizon funds and private investors.

Ideal Technical and Fundamental Positioning

The stock’s proximity to key technical support levels, favorable valuation, and robust liquidity all suggest that the risk-reward distribution is skewed attractively toward the upside at current levels—particularly in light of the multiple bullish catalysts expected over the coming quarters.

7. Is it the Right Time to Buy Bank of America?

Summary of Key Strengths

• Financial outperformance: Strong Q1 2025 results and consistent revenue growth.
• Attractive valuation: P/E and PEG ratios below sector averages, with a compelling dividend yield.
• Technical dynamics: Neutral-to-bullish momentum and resilient support levels.
• Strategic leadership: Digital banking scale, market share, and global network.
• Liquidity and market participation: High volume and active institutional presence.

Conviction in the Upward Potential

The convergence of strengthening financials, attractive technical signals, a robust dividend, and credible institutional backing all indicate that Bank of America seems to represent an excellent opportunity as 2025 unfolds. For investors seeking exposure to a fundamentally solid U.S. bank with both income and appreciation potential—particularly in the context of a recovering financial sector—BAC’s profile is difficult to overlook.

As always, ongoing assessment of macroeconomic trends and regulatory developments remains prudent. Yet, the fundamentals justify renewed interest, and clear upside exists from today’s levels. With strong technical positioning and a diverse revenue engine, Bank of America stock may very well be entering a new bullish phase—one that serious investors should consider as a strategic allocation within a global or U.S.-focused portfolio.

In this context, Bank of America stands uniquely positioned to benefit from sectoral resilience and operational excellence, offering what appears to be a highly attractive window for portfolio entry as the financial landscape enters a new era.

How to buy Bank of America stock in Singapore?

Buying Bank of America (BAC) shares online is both simple and secure for retail investors in Singapore, thanks to regulated brokers offering user-friendly platforms. You can choose between two main methods: purchasing actual BAC shares outright (spot buying), or trading Contracts for Difference (CFDs) that track BAC’s price. Spot buying gives you direct ownership, while CFDs offer flexibility and leverage, albeit without owning the shares themselves. Below, we explain both approaches in detail, so you can make an informed choice—plus, you’ll find a detailed broker comparison further down this page.

Cash buying

A cash (spot) purchase means you’re buying real Bank of America shares, which are then safely held in your brokerage account. Some Singaporean brokers charge a fixed commission per trade, often ranging from SGD $5–$15, plus possible minor currency conversion fees for US stocks.

Example

For example, if BAC shares are trading at $41.60 USD, a USD 1,000 (approx. SGD 1,350) investment (excluding forex fees) lets you buy about 23 shares, after accounting for a typical brokerage commission of around SGD $7.

Gain scenario

If BAC’s share price rises by 10%, your shares are now worth roughly USD 1,100 (SGD 1,485).
Result: +USD 100 gross gain, or +10% on your investment (excluding any minor fees or taxes).

Trading via CFD

CFDs allow you to speculate on price moves of Bank of America shares without owning them. Instead, you enter a contract with a broker to exchange the difference in price. CFD trading typically involves a bid/ask spread (a small percentage built into the price) and, if you hold positions overnight, daily financing fees.

Example

For example, with SGD 1,350 (about USD 1,000) and 5x leverage, you can open a CFD position giving you USD 5,000 exposure to BAC.

Gain scenario

If BAC rises 8%, your position gains 8% × 5 = 40%, giving a gross profit of USD 400 (SGD 540+) on your initial SGD 1,350 outlay (excluding spread and any overnight fees).

Final advice

Before investing, it’s essential to compare brokers’ fees, commissions, and conditions: these can impact your returns significantly. The most suitable method—spot buying for ownership and dividends, or CFD trading for flexible exposure and leverage—depends on your goals and risk profile. To help you choose, see our updated broker comparison further down the page. Start your investing journey with confidence, and choose the method that fits your strategy best!

Our 7 tips for buying Bank of America stock

The latest news about Bank of America

Bank of America exceeds analyst forecasts for Q1 2025 with robust earnings and revenue growth. Recently released Q1 2025 financial results reveal that the bank achieved net income of $7.4 billion, marking an 11% year-over-year increase, with earnings per share of $0.90 and revenue of $27.4 billion, both surpassing analyst expectations. Equity trading revenue in particular posted a 17% jump, signaling the bank’s resilience and diversified business performance, contributing to positive sentiment among investors, including those in global financial hubs such as Singapore.

Bank of America stock maintains a slight short-term bullish technical bias amid global banking volatility. Despite a weekly price drop of 1.29%, the current stock price of $41.60 remains above key short-term moving averages, with the 20-day, 50-day, and 200-day EMAs all supporting a slightly bullish profile. Technical indicators like the RSI at 61.70 (neutral) and favorable momentum in moving averages reflect strong underlying support, relevant to traders and institutional investors in Singapore who participate actively in U.S. markets.

Increased cash position and continued dividend payments reinforce the bank’s appeal for yield-oriented investors. Bank of America’s recent announcement of its Q2 2025 dividend affirms a quarterly payout of $0.26 per share, supported by a robust cash balance of over $800 billion. With a dividend yield of 2.5% and an ex-dividend date set for June 6, 2025, the stock remains attractive for Singapore-based investors and wealth managers searching for stable, income-generating opportunities in major U.S. equities.

Renewed focus on equity trading and digital expansion positions the bank well for Asia-Pacific growth. The record quarterly performance in equity trading, coupled with the ongoing expansion of its digital banking ecosystem—now encompassing nearly 59 million verified digital users—demonstrates the bank’s ability to leverage technology and capital markets expertise. This is complemented by its extensive presence in over 35 countries, including regional operations in Singapore, which functions as a strategic gateway to the broader ASEAN and Asia-Pacific banking markets.

Consensus price targets and steady growth projections highlight continued optimism from international analysts. Wall Street analysts currently set a consensus price target of $48.57 for BAC, representing an approximate 30% upside from current levels, with forward price-to-earnings and PEG ratios indicating reasonable growth prospects. This upbeat outlook is of particular interest to Singaporean institutional investors, who closely monitor U.S. bank stocks for both tactical trading opportunities and longer-term asset allocation strategies in globally diversified portfolios.

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.