Bank of America Corporation (NYSE:BAC) Projects Continued Upside As Momentum Builds Against Undervalued Base

Bank of America enters the near term with constructive momentum and fundamental beats that support a valuation gap identified by WMDST. Technical momentum suggests room for modest upside while select mean-reversion signals warrant caution.

Recent News

On April 15th the company released its first-quarter operational highlights and related 8-K disclosures; on April 23rd the Board declared a $0.28 quarterly common dividend payable in June; in late March the firm deployed an AI meeting system across its wealth advisers; the company set its FY‑end reporting calendar on March 19th; recent 13F disclosures revealed positions in multiple spot crypto ETFs.

Technical Analysis

ADX & Directional Indicators: ADX at 19.62 reads as no established trend, while DI+ at 28.45 showing a dip-and-reverse signals a bullish directional turn; DI- at 17.74 decreasing further supports directional internals that favor buyers. These directional shifts align with a short-term upward bias but lack strong trend strength.

MACD: MACD at 0.63 and rising, above its signal line at 0.28, confirms bullish momentum through a recent MACD cross above the signal line, supporting the likelihood of further near-term appreciation toward the WMDST valuation reference.

MRO: MRO reads 7.51 and registered a peak-and-reversal, which implies the price sits above the MRO target and faces potential downward pressure if momentum stalls; that pressure would act as a counterweight to the MACD and DI+ bullish signals.

RSI and Short-Term Price Structure: RSI at 55.77 and increasing indicates modest bullish momentum without overbought stress. Price at $54.54 trades above the 12‑day EMA ($52.94), 20‑day average ($52.38), 50‑day average ($51.86) and the 200‑day average ($51.49), reinforcing a near-term price bias to the upside while the position above the upper 1x Bollinger band ($53.94) signals a mild extension that could invite profit-taking.

Support/Resistance & Volatility: SuperTrend lower support sits at $52.25, providing a nearby technical floor; volatility metrics remain low across 42‑day and 52‑week measures, which suggests moves may unfold gradually rather than via abrupt swings. Price target mean at $53.99 sits marginally below the current price, while the high/low analyst range ($72.85 / $39.03) frames broader optionality.

 


Fundamental Analysis

Earnings & Quality: Quarterly EPS came in at $1.11 versus a $1.02 estimate, a $0.09 beat and an EPS surprise of 8.82%. Forward EPS sits at $1.262, which supports forward earnings visibility into upcoming reports.

Revenue & Growth Rates: Trailing revenue totaled $30,272,000,000 with YoY revenue growth of 38.21% and QoQ revenue growth of 79.25%, indicating strong top-line expansion over both horizons that underpins current earnings momentum.

Profitability: Return on assets equals 0.249% and return on equity equals 3.114%; both metrics fall below their respective industry peer means (ROA industry peer mean 0.386%; ROE industry peer mean 4.982%), which highlights scope for efficiency gains relative to peers even as absolute earnings improved YoY (earnings growth YoY 35.97%).

Capital Structure & Liquidity: Debt-to-assets stands at 10.97% with debt-to-equity at 1.391, and cash of $249,865,000,000 against total assets of $3,496,186,000,000. Dividend coverage at 3.27 and a dividend payout ratio of 30.59% support the Board’s continuation of capital returns.

Valuation Metrics: Trailing P/E reads 45.78 (QoQ change -16.48%, YoY change -1.23%). Price-to-book stands at 1.314, slightly above the industry peer mean of 1.081 and near the industry peer median of 1.328. Forward P/E at 40.22 trades below the industry peer mean forward P/E of 43.71. Free cash flow yield equals 11.53%, materially above the industry peer mean of -0.48%, supporting a cash-flow-driven valuation case.

WMDST Valuation Conclusion: The current valuation as determined by WMDST classifies the stock as under-valued, a view underpinned by a robust free cash flow yield, an EPS beat with positive earnings growth, and a forward P/E below peer mean despite trailing P/E compression.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2026-03-31
REPORT DATE: 2026-04-15
NEXT REPORT DATE: 2026-07-15
CASH FLOW  Begin Period Cash Flow 231.8 B
 Operating Cash Flow 41.8 B
 Capital Expenditures
 Change In Working Capital 30.1 B
 Dividends Paid -2.63 B
 Cash Flow Delta 10.6 B
 End Period Cash Flow 242.5 B
 
INCOME STATEMENT REVENUE
 Total Revenue 30.3 B
 Forward Revenue 7.9 B
COSTS
 Cost Of Revenue
 Depreciation 605.0 M
 Depreciation and Amortization 605.0 M
 Research and Development
 Total Operating Expenses
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT
 Operating Income
 Interest Income 33.4 B
 Interest Expense 17.6 B
 Net Interest Income 15.7 B
 Income Before Tax 10.4 B
 Tax Provision 1.8 B
 Tax Rate 17.493 %
 Net Income 8.6 B
 Net Income From Continuing Operations 8.6 B
EARNINGS
 EPS Estimate 1.02
 EPS Actual 1.11
 EPS Difference 0.09
 EPS Surprise 8.824 %
 Forward EPS 1.26
 
BALANCE SHEET ASSETS
 Total Assets 3.5 T
 Intangible Assets 69.0 B
 Net Tangible Assets 231.6 B
 Total Current Assets
 Cash and Short-Term Investments
 Cash 249.9 B
 Net Receivables 96.1 B
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable
 Short-Term Debt 82.8 B
 Total Current Liabilities
 Net Debt 133.7 B
 Total Debt 383.6 B
 Total Liabilities 3.2 T
EQUITY
 Total Equity 275.7 B
 Retained Earnings 267.8 B
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 38.66
 Shares Outstanding 7.130 B
 Revenue Per-Share 4.25
VALUATION
 Market Capitalization 362.3 B
 Enterprise Value 745.9 B
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R 24.641
CAPITAL STRUCTURE
 Asset To Equity 12.682
 Asset To Liability 1.094
 Debt To Capital 0.582
 Debt To Assets 0.11
Debt To Assets QoQ 2.303 %
Debt To Assets YoY 6.328 %
Debt To Assets IPRWA high: 0.242
mean: 0.164
median: 0.159
BAC: 0.11
low: 0.002
 Debt To Equity 1.391
Debt To Equity QoQ 5.435 %
Debt To Equity YoY 10.751 %
Debt To Equity IPRWA high: 4.312
median: 2.341
mean: 2.133
BAC: 1.391
low: 0.017
PRICE-BASED VALUATION
 Price To Book (P/B) 1.314
Price To Book QoQ -5.949 %
Price To Book YoY 14.634 %
Price To Book IPRWA high: 2.882
median: 1.328
BAC: 1.314
mean: 1.082
low: 0.001
 Price To Earnings (P/E) 45.782
Price To Earnings QoQ -16.48 %
Price To Earnings YoY -1.234 %
Price To Earnings IPRWA high: 70.027
mean: 54.576
median: 53.875
BAC: 45.782
low: 0.034
 PE/G Ratio 3.451
 Price To Sales (P/S) 11.969
Price To Sales QoQ -3.679 %
Price To Sales YoY 3.852 %
Price To Sales IPRWA high: 28.872
BAC: 11.969
median: 8.597
mean: 7.371
low: 0.006
FORWARD MULTIPLES
Forward P/E 40.224
Forward PE/G 3.032
Forward P/S 45.727
EFFICIENCY OPERATIONAL
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio 0.009
Asset Turnover Ratio QoQ -4.262 %
Asset Turnover Ratio YoY 5.797 %
Asset Turnover Ratio IPRWA high: 0.025
mean: 0.011
median: 0.011
BAC: 0.009
low: 0.004
 Receivables Turnover 0.312
Receivables Turnover Ratio QoQ -1.023 %
Receivables Turnover Ratio YoY -7.426 %
Receivables Turnover Ratio IPRWA high: 3.666
median: 2.0
mean: 1.984
BAC: 0.312
low: 0.256
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO) 292.795
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue
 CapEx To Depreciation
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 601.4 B
 Net Invested Capital 659.3 B
 Invested Capital 659.3 B
 Net Tangible Assets 231.6 B
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 3.064 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio 3.269
 Dividend Payout Ratio 0.306
 Dividend Rate 0.37
 Dividend Yield 0.007
PERFORMANCE GROWTH
 Asset Growth Rate 2.475 %
 Revenue Growth 11.008 %
Revenue Growth QoQ 79.254 %
Revenue Growth YoY 38.205 %
Revenue Growth IPRWA high: 25.524 %
BAC: 11.008 %
mean: -0.299 %
median: -1.929 %
low: -16.051 %
 Earnings Growth 13.265 %
Earnings Growth QoQ -275.765 %
Earnings Growth YoY 35.968 %
Earnings Growth IPRWA high: 49.694 %
BAC: 13.265 %
mean: 3.793 %
median: 3.333 %
low: -29.412 %
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF) 41.8 B
 Free Cash Flow Yield 11.528 %
Free Cash Flow Yield QoQ -294.664 %
Free Cash Flow Yield YoY -1765.896 %
Free Cash Flow Yield IPRWA high: 35.898 %
BAC: 11.528 %
median: 1.458 %
mean: -0.481 %
low: -4.948 %
 Free Cash Growth -282.044 %
Free Cash Growth QoQ 89.355 %
Free Cash Growth YoY 160.121 %
Free Cash Growth IPRWA high: 219.58 %
median: -120.96 %
mean: -152.242 %
BAC: -282.044 %
low: -635.913 %
 Free Cash To Net Income 4.866
 Cash Flow Margin 37.305 %
 Cash Flow To Earnings 1.316
VALUE & RETURNS
 Economic Value Added 0.03
 Return On Assets (ROA) 0.249 %
Return On Assets QoQ 12.67 %
Return On Assets YoY 11.161 %
Return On Assets IPRWA high: 0.614 %
median: 0.396 %
mean: 0.386 %
BAC: 0.249 %
low: 0.034 %
 Return On Capital Employed (ROCE)
 Return On Equity (ROE) 0.031
Return On Equity QoQ 14.696 %
Return On Equity YoY 15.805 %
Return On Equity IPRWA high: 0.058
mean: 0.05
median: 0.049
BAC: 0.031
low: 0.003
 DuPont ROE 3.103 %
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Expect the price to trade with modest upside bias over the next six weeks while momentum indicators (MACD cross, DI+ reversal, rising RSI) retain strength. Watch for consolidation or pullback if MRO-driven mean reversion accelerates or if price retreats below the $52.25 SuperTrend support. Low volatility and price trading above short- and long-term averages suggest any directional move will likely unfold gradually; technical resilience combined with the WMDST under-valued tag points to a constructive swing-trade environment, tempered by potential short-term mean reversion risks.

About Bank of America Corporation

Bank of America Corporation (NYSE:BAC) delivers a broad range of financial services to a diverse clientele, including individual consumers, businesses of varying sizes, and government entities. Headquartered in Charlotte, North Carolina, this multinational financial institution structures its operations into four key segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. In the Consumer Banking segment, Bank of America offers savings and checking accounts, credit and debit cards, and various loan products such as mortgages and auto loans, aiming to address the everyday financial needs of its customers with accessible solutions. The Global Wealth & Investment Management division provides personalized investment and wealth management services, granting clients access to an extensive array of financial products and strategic advice to manage and enhance their wealth effectively. Within the Global Banking segment, the bank delivers comprehensive lending solutions, treasury management, and advisory services to corporate clients, supporting their growth and operational efficiency. The Global Markets division offers market-making, securities trading, and risk management services, catering to institutional investors with a wide range of financial instruments. Established in 1784, Bank of America remains dedicated to fostering economic growth and providing exceptional value to its clients globally.



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