What's Going On With Bank Of America (BAC) Shares

Bank of America Corp BAC shares have surged 12% to $46.80 in November, fueled by investor optimism following Donald Trump's presidential election win and the expectation of favorable economic policies for the banking industry.

What To Know: Trump's agenda, including potential tax cuts and regulatory rollbacks, is anticipated to create a supportive environment for financial institutions. Lower corporate taxes would allow Bank of America to retain more earnings, which could be used to expand lending operations, return capital to shareholders, or invest in new technologies.

Trump's focus on deregulation, including easing restrictions under the Dodd-Frank Act, is another positive for Bank of America. Reduced compliance costs and increased operational flexibility would allow the bank to grow its retail and commercial lending segments more aggressively. This could translate into higher revenues, particularly as businesses seek financing to capitalize on economic growth.

Additionally, Trump's infrastructure spending plans may spur demand for corporate credit and advisory services, further bolstering Bank of America's revenues.

Meanwhile, potential inflationary pressures under Trump's policies could keep interest rates higher, boosting the bank's net interest margins and profitability on loans.

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Is BAC A Good Stock To Buy?

Wall Street analysts view Bank of America on the whole as an Outperform, given the history of coverage over the past three months. Keith Horowitz from Citigroup in Bank of America is the most optimistic, expecting a 17.39% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Bank of America rose 20.27%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 0.68% over the past year.

A complete overview of how Wall Street views individual stocks is available here, while real time updates on the latest analyst actions will be delivered via Benzinga PRO. Try it for free.

BAC has a 52-week high of $46.84 and a 52-week low of $29.22.