Earnings Growth & Price Strength Make Bank of America (BAC) a Stock to Watch

Zacks highlights the performance of its Focus List, a portfolio of 50 stocks selected for their potential to outperform the market over the next 12 months, noting a 2020 annualized gain of 13.85% versus the S&P 500's 9.38%. Bank of America (BAC), currently a Zacks #3 (Hold) stock, is spotlighted as a Focus List component, having increased 94.36% since its addition in January 2017, with analysts projecting 12.2% earnings growth for the current fiscal year and a consensus estimate of $3.68 after recent upward revisions.

Analysis

The Zacks Focus List, a curated portfolio of 50 stocks, is presented as a tool for long-term investors, leveraging earnings estimate revisions as a primary selection criterion for companies anticipated to outperform the market. This methodology reportedly led to a 13.85% annualized gain for the Focus List in 2020, surpassing the S&P 500's 9.38%, and a cumulative return of 2,519.23% from February 1, 1996, to March 31, 2021, compared to the S&P 500's 854.95%. Bank of America (BAC), a financial holding company with $3.35 trillion in assets as of March 31, 2025, serves as a case study. Added to the Focus List on January 9, 2017, at $22.68 per share, BAC shares have since appreciated 94.36% to $44.08. Despite its current Zacks #3 (Hold) rating, BAC exhibits positive forward-looking indicators: for fiscal 2025, four analysts have revised earnings estimates upwards in the last 60 days, leading to a $0.01 increase in the Zacks Consensus Estimate to $3.68. Furthermore, BAC is projected to achieve 12.2% earnings growth in the current fiscal year and has demonstrated an average earnings surprise of 6.6%.

Key Decisions for Investors

• Investors should evaluate Bank of America based on its projected 12.2% earnings growth for the current fiscal year and the recent upward revisions to its fiscal 2025 earnings estimates, which align with the Focus List's core selection strategy.
• Monitor future earnings estimate revisions for BAC closely, as these are highlighted by Zacks as a primary driver of stock performance and a key factor for Focus List inclusion, potentially signaling further upside despite its current #3 (Hold) rating.
• Consider the significant historical return of BAC since its addition to the Focus List, but balance this with the current 'Hold' status and the promotional context of the source when making investment decisions.