Bank of America Corporation (BAC), headquartered in Charlotte, North Carolina, provides banking and financial products and services. With a market cap of $331.9 billion, the company offers saving accounts, deposits, mortgage and construction loans, cash and wealth management, certificates of deposit, investment funds, credit and debit cards, insurance, mobile, and online banking services. 

Companies worth $200 billion or more are generally described as “mega-cap stocks,” and BAC definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the diversified banks industry. BAC has been able to capitalize on the growing trend of digital banking by investing in technology and attracting a large number of active users on its digital platforms. This has allowed the company to expand its market share and gain momentum in the ever-changing landscape of digital banking.

Despite its notable strength, BAC slipped 8% from its 52-week high of $48.08, achieved on Nov. 29, 2024. Over the past three months, BAC stock declined 4%, underperforming the Dow Jones Industrials Average’s ($DOWI) 3.7% dip during the same time frame.

In the longer term, shares of BAC rose marginally on a YTD basis and climbed 12.5% over the past 52 weeks, outperforming DOWI’s YTD marginal losses and 8.7% returns over the last year.

To confirm the bullish trend, BAC has been trading above its 50-day and 200-day moving averages since early May, with minor fluctuations. 

Bank of America's success can be attributed to aggressive branch expansion, solidifying customer relationships, and tapping into new markets to drive net interest income growth. The company plans to open over 150 financial centers by 2027 and renovate existing centers. With initiatives like Zelle and Erica, Bank of America aims to enhance digital offerings and cross-sell products. The company expects NII to rise in 2025 due to loan demand, higher interest rates, and robust deposit balances. Overall, Bank of America's focus on digitizing operations and expanding, along with decent loan growth, is expected to support continued growth.

On Apr. 15, BAC shares closed up more than 3% after reporting its Q1 results. Its EPS of $0.90 topped Wall Street expectations of $0.81. The company’s revenue net of interest expense was $27.4 billion, topping Wall Street forecasts of $26.9 billion.

BAC’s rival, HSBC Holdings plc (HSBC) shares lagged behind the stock, with a 19.7% gain on a YTD basis and 34.1% returns over the past 52 weeks.

Wall Street analysts are bullish on BAC’s prospects. The stock has a consensus “Strong Buy” rating from the 24 analysts covering it, and the mean price target of $49.31 suggests a potential upside of 11.5% from current price levels.