Should I buy Bank of America stock in 2025? Insights for South Africans

What is Bank of America?

Important information

Note: EBITDA is not a standard metric for banks, which focus on net income and margins.

How much is the Bank of America stock?

The price of Bank of America stock is rising this week. Currently trading at $44.24, the stock is up 0.41% over the last 24 hours and has gained 2.29% over the past week. Bank of America’s market capitalisation stands at $333.21 billion, with an average daily volume of 49.23 million shares traded over the last three months.

With moderate volatility and analyst consensus signalling buying potential, Bank of America offers an interesting opportunity for South African investors seeking exposure to global banking leaders.

Our full analysis of the Bank of America stock

Having thoroughly examined Bank of America’s recent financial disclosures, its stock performance trajectory since 2022, and relevant competitive and macroeconomic data—filtered through a proprietary blend of quantitative signals and fundamental rankings—we find sustained strengths and emerging opportunities in BAC. By combining latest market indicators with a robust contextual analysis of industry peers, our review surfaces multiple drivers supporting a constructive thesis. So, why might Bank of America stock once again become a strategic entry point into the global financial sector in 2025?

Recent Performance and Market Context

Bank of America (BAC), listed on the NYSE, has shown considerable resilience and underlying strength in its share price over the last twelve months. As of 30 May 2025, BAC trades at $44.24, having risen 14.26% over the past year and outpacing many peers in the diversified banking group. After a volatile six-month stretch marked by sector rotation and macro headwinds, the stock remains near the upper limit of its 52-week range ($33.07–$48.08), illustrating a return of investor confidence.

• Q1 2025 earnings delivered a notable beat: net income rose 11% year-on-year to $7.4 billion, markedly outpacing consensus estimates.
• Strategic technology advances saw a 60% surge in digital banking interactions—particularly through the CashPro platform, reinforcing BAC’s competitive tech edge.
• Stablecoin innovation: Ongoing discussions with major banks on developing a common stablecoin suggest BAC’s intent to maintain strategic relevance as payments digitise.
• Despite a Moody’s downgrade following the US sovereign debt rating cut, BAC’s operational stability (with a $333bn market cap) positions it as a bellwether for large-cap banking.

The current sector context is especially supportive, with US interest rates at cycle-highs, benefiting net interest margins for large, deposit-rich franchises such as Bank of America. For South African investors seeking diversification and USD exposure, BAC offers transparent access to the global financial cycle, diversified across consumer, corporate, and markets activities.

Technical Analysis

A technical review highlights robust buy-side momentum:

• Momentum Indicators:
• The 14-day Relative Strength Index (RSI) is 62.40—neutral, though approaching bullish territory.
• MACD stands at 1.08 with a confirmed buy signal, complemented by a bullish Williams %R of –27.76.
• Moving Averages:
• All major averages are trending positive, with 5-, 20-, 50-, 100-, and 200-day SMAs ($43.61, $42.82, $40.74, $42.75, $42.30) acting as established support structures.
• The 50-day SMA recently crossed above the 200-day SMA (‘golden cross’), a classic technical signal that often precedes medium-term rallies.
• Support and Resistance: Immediate technical support sits at $43.60 and resistance at $44.53, suggesting a compressed trading window and latent volatility as BAC approaches consensus targets.

The consensus technical outlook is a ‘strong buy’, with favorable momentum and little sign of near-term exhaustion. This positions BAC near a technical inflection point, ripe for proactive accumulation by institutional and private investors alike.

Fundamental Analysis

Bank of America’s 2025 outlook is underpinned by core strengths:

• Revenue and Earnings Growth: Q1 revenue of $27.4 billion (+6% YoY) demonstrates Bank of America’s capacity to expand both top- and bottom-lines in a complex market. Net income of $7.4 billion translates to margin expansion, confirming ongoing operational leverage.
• Profitability Metrics:
• A net profit margin of 26.93% is industry-leading among diversified US banks.
• Return on Equity stands at 9.46%, delivering steady value creation in line with global banking majors.
• Return on Assets at 0.84% evidences balance-sheet robustness.
• Attractive Valuation: With a trailing P/E of 13.21, BAC trades at a marked discount to both the S&P 500 and key global banking peers. The current PEG and P/S ratios (in context of 5.9% consensus revenue growth for 2025) further bolster BAC’s value case.
• Strategic Expansion: The ongoing rollout of 150 new branches and the push into digital payment and stablecoin initiatives show commitment to future-proofing business operations.

Bank of America’s structural advantages—diversified platforms, strong digital investments, and scale—support the view that it is exceptionally well positioned for ongoing cyclical and secular growth.

Volume and Liquidity

Market participation remains a noteworthy strength for BAC:

• Average 3-month daily trading volume stands at 49.23 million shares—among the highest in global banking, pointing to deep liquidity and active institutional engagement.
• The large float (7.53 billion shares outstanding) not only gives price discovery credibility but enables dynamic valuation adjustment during periods of earnings outperformance, macro shocks, or regulatory shifts.

For global investors—ZA domiciled or otherwise—this high degree of liquidity supports both tactical trading strategies and long-horizon accumulation, without undue slippage or liquidity risk.

Catalysts and Positive Outlook

Several visible catalysts reinforce the medium-term bullish case:

• High Interest Rate Tailwinds: With the US Federal Reserve maintaining a restrictive policy stance, BAC’s large deposit base allows continued expansion in net interest margins—a direct boost to profitability.
• Strategic Expansion: The bank’s plan to add 150 retail branches through 2028 opens further growth in underserved US geographies, while continued international push is expected to benefit from recovery in global capital flows.
• Digital and Stablecoin Initiatives: Frontier investments in digital payments and stablecoins spotlight BAC’s technological commitment, positioning it for leadership in new banking paradigms.
• Capital Strength: Robust capital ratios and a commitment to capital return (dividend yield at 2.35%, ongoing share buybacks) provide both cushion and upside for future returns.
• ESG and Sustainable Finance: BAC’s drive to integrate ESG into both lending and asset management portfolios (with increasing allocation to sustainable finance) attracts institutional flows and enhances brand equity.

Compared to regional and global peers, BAC’s blend of fundamentals, technological adaptability, and expansion discipline enables it to capture value as industry profit pools shift.

Investment Strategies

Bank of America’s current set-up allows for several potential entry strategies:

• Short-Term Positioning: The technical pattern shows BAC approaching a multi-session accumulation phase with support tightly defined at $43.60. Volatility around the ex-dividend date (6 June 2025) and the next earnings announcement (16 July) could provide opportunistic entry windows.
• Medium-Term Perspective: For investors targeting a multi-quarter horizon, BAC’s ongoing branch expansion and digital banking rollouts are likely to continue fueling both sentiment and fundamentals, particularly as high interest rates persist.
• Long-Term Horizon: The stock’s historically attractive valuation, coupled with a projected 5.6%–5.9% compound annual revenue growth for 2025–2026, justifies a strategic ‘buy and accumulate’ thesis. Sustainable returns via dividends and share buybacks further reinforce the long-term opportunity.

Overall, the current setup—combining technical resilience, dividend income, capital appreciation potential, and strong brand value—seems to represent an excellent opportunity for investors to build core exposure at what appears to be a compelling risk-reward juncture.

Is it the Right Time to Buy Bank of America?

In summary, Bank of America offers a unique blend of robust fundamentals, attractive valuation, and technical momentum. The stock is benefiting from a supportive interest rate backdrop, continued business expansion, and a series of technological innovations—all underpinned by strong liquidity and disciplined capital return. Analyst sentiment remains firmly positive, with consensus targets indicating meaningful upside from current levels.

For South African investors looking to diversify internationally and gain exposure to a best-in-class, tech-forward US bank, the case for considering BAC at current levels appears increasingly persuasive. The confluence of rising profitability, digital transformation, and prudent risk management point to a new bullish phase for the stock.

As a result, Bank of America’s current positioning appears highly favourable to those seeking exposure to the global financial sector, with both short- and long-term return potential notably skewed to the upside. BAC seems well poised to reward investors opportunistically entering at these technical and fundamental levels—and deserves a central place on any watchlist as 2025 unfolds.

How to buy Bank of America stock in South Africa?

Buying Bank of America stock online from South Africa is a straightforward and secure process, provided you use a regulated broker. Local and international platforms now make it easy to access the US stock market, often with user-friendly apps and robust security features. You typically have two main methods for investing: spot (cash) buying, where you directly own the shares, and CFD (Contracts for Difference) trading, which allows trading on price movements with leverage but without ownership. The right choice depends on your goals—compare leading brokers and their fees in the comparison table further down this page.

Spot buying

Cash buying means you purchase and own Bank of America shares in your online brokerage account. As a South African investor, you’ll pay a fixed commission per order—usually between R100 and R250, although some platforms also add a small percentage fee (typically 0.2%–0.5%). Since US stocks like Bank of America are priced in dollars, most brokers will also convert your ZAR deposit to USD for trading.

Example

If Bank of America shares trade at $44.24 (about R820 at R18.55/USD), a $1,000 investment (~R18,550) buys roughly 22 shares after factoring in a typical $5 brokerage fee.
✔️ Gain scenario:
If the share price rises by 10%, your shares now have a market value of $1,100.
Result: That’s a $100 gross gain, or +10% on your initial investment.

Trading via CFD

CFD trading lets you speculate on Bank of America’s share price without owning the underlying shares. Instead, you open a contract reflecting the price movements. CFDs are attractive for short-term strategies and offer leverage—amplifying both gains and losses. Costs include spreads (the broker’s markup on the buy/sell price) and overnight financing fees if you hold positions longer than a day.

Example

You deposit $1,000 (about R18,550) and use 5x leverage to take a CFD position worth $5,000 on Bank of America shares.
✔️ Gain scenario:
If the stock rises 8%, your exposure of $5,000 grows by 8% (= $400 gain). This is a 40% return on your $1,000 outlay (excluding fees).

Final advice

Before investing, it’s wise to compare broker fees, trading platforms, and support for South African residents—costs and features can differ widely. Some platforms are better for long-term ownership, while others are optimised for active trading with leverage. The best method for you comes down to your timeframe, risk appetite, and investment objectives. Use the comparison section below to find a broker tailored to your needs and start building your portfolio with confidence.

Our 7 tips for buying Bank of America stock

The latest news about Bank of America

Bank of America stock advanced 2.29% over the last week, confirming sustained recovery and robust trading volumes. The stock closed at $44.24 on 30 May 2025, near the upper range of its 52-week trading band, and continued to post positive technical signals, with moving averages and indicators such as MACD and Williams %R both showing buy signals. Market consensus remains strongly favourable, and with a technical pivot support at $43.60 and resistance at $44.53, the short-term outlook is constructive—a signal welcomed by South African investors seeking reliable global banking exposure.

Bank of America delivered a solid Q1 2025 performance, beating analyst expectations across revenue and profit metrics. The bank announced quarterly revenue of $27.4 billion, up 6% year-on-year, and net profits rising by 11% to $7.4 billion. These results exceeded analyst forecasts, highlighting BAC's operational strength and prudent cost control. For local South African portfolio managers and institutions with US dollar allocations, such outperformance reinforces BAC's credentials as a high-quality international financial stock, potentially contributing to diversification and USD income streams through an annual dividend yield of 2.35%.

Bank of America’s expansion in digital banking and global payment solutions strengthens its appeal for dynamic, tech-oriented markets like South Africa. The bank reported a remarkable 60% surge in QR-based digital connections on its CashPro platform, underscoring its ongoing commitment to innovation and digital transformation. These technology investments facilitate seamless international payment flows, directly benefitting companies and individuals in South Africa engaged in cross-border trade, and reinforcing BAC’s strategic role as a partner for African financial and corporate markets.

Recent analyst consensus signals a “Buy” with a target price 10.7% above current levels, highlighting further upside potential. More than 20 prominent analysts globally now recommend Bank of America as a buy, with a collective target price of $48.96. The sentiment reflects confidence in the bank’s growth trajectory, capital strength, and ability to navigate high interest rate environments—all of which are key differentiators for South African investors considering offshore allocations or ETF products referencing major U.S. financials.

Bank of America’s stable dividend and pending ex-dividend date on 6 June 2025 offer timely income opportunities for local shareholders. The bank continues to demonstrate balance sheet resilience and a disciplined capital return strategy, paying an annualised dividend of $1.04 per share. South African investors positioned on the JSE’s offshore trading platforms or through global custodians can benefit from this predictable payout, leveraging the stable USD cash flows at a time of rand volatility and ongoing demand for hard currency income streams.

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.