Bank Of America Stock Price Prediction

BAC Stock  USD 42.90  0.11  0.26%   
At the present time, The relative strength index (RSI) of Bank of America's share price is at 57 suggesting that the stock is in nutural position, most likellhy at or near its resistance level. The main idea of RSI analysis is to track how fast people are buying or selling Bank of America, making its price go up or down.

Oversold Vs Overbought

57

 
Oversold
 
Overbought
The successful prediction of Bank of America's future price could yield a significant profit. We analyze noise-free headlines and recent hype associated with Bank of America, which may create opportunities for some arbitrage if properly timed. Below are the key fundamental drivers impacting Bank of America's stock price prediction:
Quarterly Earnings Growth
(0.06)
EPS Estimate Next Quarter
0.8
EPS Estimate Current Year
3.24
EPS Estimate Next Year
3.63
Wall Street Target Price
44.1
Using Bank of America hype-based prediction, you can estimate the value of Bank of America from the perspective of Bank of America response to recently generated media hype and the effects of current headlines on its competitors. We also analyze overall investor sentiment towards Bank of America using Bank of America's stock options and short interest. It helps to benchmark the overall future attitude of investors towards Bank using crowd psychology based on the activity and movement of Bank of America's stock price.

Bank of America Short Interest

A significant increase or decrease in Bank of America's short interest from the previous month could be a good indicator of investor sentiment towards Bank. Short interest can provide insight into the potential direction of Bank of America stock and how bullish or bearish investors feel about the market overall.
200 Day MA
34.8466
Short Percent
0.0099
Short Ratio
1.79
Shares Short Prior Month
72.3 M
50 Day MA
40.024

Bank of America Hype to Price Pattern

Investor biases related to Bank of America's public news can be used to forecast risks associated with an investment in Bank. The trend in average sentiment can be used to explain how an investor holding Bank can time the market purely based on public headlines and social activities around Bank of America. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Some investors profit by finding stocks that are overvalued or undervalued based on market sentiment. The correlation of Bank of America's market sentiment to its price can help taders to make decisions based on the overall investors consensus about Bank of America.

Bank of America Implied Volatility

    
  35.14  
Bank of America's implied volatility exposes the market's sentiment of Bank of America stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bank of America's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Bank of America stock will not fluctuate a lot when Bank of America's options are near their expiration.
The fear of missing out, i.e., FOMO, can cause potential investors in Bank of America to buy its stock at a price that has no basis in reality. In that case, they are not buying Bank because the equity is a good investment, but because they need to do something to avoid the feeling of missing out. On the other hand, investors will often sell stocks at prices well below their value during bear markets because they need to stop feeling the pain of losing money.

Bank of America after-hype prediction price

    
  USD 43.01  
There is no one specific way to measure market sentiment using hype analysis or a similar predictive technique. This prediction method should be used in combination with more fundamental and traditional techniques such as stock price forecasting, technical analysis, analysts consensus, earnings estimates, and various momentum models.

Prediction based on Rule 16 of the current Bank contract

Based on the Rule 16, the options market is currently suggesting that Bank of America will have an average daily up or down price movement of about 2.2% per day over the life of the 2024-07-19 option contract. With Bank of America trading at USD 42.9, that is roughly USD 0.94 . If you think that the market is fully incorporating Bank of America's daily price movement you should consider acquiring Bank of America options at the current volatility level of 35.14%. But if you have an opposite viewpoint you should avoid it and even consider selling them.
  
Check out Bank of America Basic Forecasting Models to cross-verify your projections.
For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Bank of America's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Intrinsic
Valuation
LowRealHigh
39.3240.6247.19
Details
25 Analysts
Consensus
LowTargetHigh
29.1832.0735.60
Details
Earnings
Estimates (0)
LowProjected EPSHigh
0.720.810.87
Details
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Bank of America. Your research has to be compared to or analyzed against Bank of America's peers to derive any actionable benefits. When done correctly, Bank of America's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Bank of America.

Bank of America After-Hype Price Prediction Density Analysis

As far as predicting the price of Bank of America at your current risk attitude, this probability distribution graph shows the chance that the prediction will fall between or within a specific range. We use this chart to confirm that your returns on investing in Bank of America or, for that matter, your successful expectations of its future price, cannot be replicated consistently. Please note, a large amount of money has been lost over the years by many investors who confused the symmetrical distributions of Stock prices, such as prices of Bank of America, with the unreliable approximations that try to describe financial returns.
   Next price density   
       Expected price to next headline  

Bank of America Estimiated After-Hype Price Volatility

In the context of predicting Bank of America's stock value on the day after the next significant headline, we show statistically significant boundaries of downside and upside scenarios based on Bank of America's historical news coverage. Bank of America's after-hype downside and upside margins for the prediction period are 41.71 and 44.31, respectively. We have considered Bank of America's daily market price in relation to the headlines to evaluate this method's predictive performance. Remember, however, there is no scientific proof or empirical evidence that news-based prediction models outperform traditional linear, nonlinear models or artificial intelligence models to provide accurate predictions consistently.
Current Value
42.90
43.01
After-hype Price
44.31
Upside
Bank of America is very steady at this time. Analysis and calculation of next after-hype price of Bank of America is based on 3 months time horizon.

Bank of America Stock Price Prediction Analysis

Have you ever been surprised when a price of a Company such as Bank of America is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Bank of America backward and forwards among themselves. Have you ever observed a lot of a particular company's price movement is driven by press releases or news about the company that has nothing to do with actual earnings? Usually, hype to individual companies acts as price momentum. If not enough favorable publicity is forthcoming, the Stock price eventually runs out of speed. So, the rule of thumb here is that as long as this news hype has nothing to do with immediate earnings, you should pay more attention to it. If you see this tendency with Bank of America, there might be something going there, and it might present an excellent short sale opportunity.
Expected ReturnPeriod VolatilityHype ElasticityRelated ElasticityNews DensityRelated DensityExpected Hype
  0.23 
1.30
  0.11 
  0.04 
8 Events / Month
8 Events / Month
In about 8 days
Latest traded priceExpected after-news pricePotential return on next major newsAverage after-hype volatility
42.90
43.01
0.26 
282.61  
Notes

Bank of America Hype Timeline

On the 20th of July Bank of America is traded for 42.90. The entity has historical hype elasticity of 0.11, and average elasticity to hype of competition of 0.04. Bank is forecasted to increase in value after the next headline, with the price projected to jump to 43.01 or above. The average volatility of media hype impact on the company the price is over 100%. The price growth on the next news is projected to be 0.26%, whereas the daily expected return is currently at 0.23%. The volatility of related hype on Bank of America is about 836.26%, with the expected price after the next announcement by competition of 42.94. The company reported the last year's revenue of 98.58 B. Total Income to common stockholders was 26.52 B with profit before taxes, overhead, and interest of 92.41 B. Considering the 90-day investment horizon the next forecasted press release will be in about 8 days.
Check out Bank of America Basic Forecasting Models to cross-verify your projections.
For information on how to trade Bank Stock refer to our How to Trade Bank Stock guide.

Bank of America Related Hype Analysis

Having access to credible news sources related to Bank of America's direct competition is more important than ever and may enhance your ability to predict Bank of America's future price movements. Getting to know how Bank of America's peers react to changing market sentiment, related social signals, and mainstream news is a great way to find investing opportunities and time the market. The summary table below summarizes the essential lagging indicators that can help you analyze how Bank of America may potentially react to the hype associated with one of its peers.
Hype
Elasticity
News
Density
Semi
Deviation
Information
Ratio
Potential
Upside
Value
At Risk
Maximum
Drawdown
CCitigroup 1.75 8 per month 1.39  0.04  2.81 (1.90) 6.80 
WFCWells Fargo(0.96)9 per month 1.59 (0.03) 2.73 (2.05) 9.45 
TDToronto Dominion Bank(0.20)11 per month 1.41 (0.04) 1.75 (1.58) 7.35 
RYRoyal Bank of 0.67 7 per month 0.60  0.10  1.89 (1.27) 6.54 
JPMJPMorgan Chase Co 2.00 6 per month 1.11  0.09  2.02 (1.46) 7.01 
NUNu Holdings 0.27 10 per month 1.73  0.08  3.93 (3.18) 10.68 
HSBCHSBC Holdings PLC(0.06)9 per month 1.08 (0) 1.71 (1.81) 6.45 
CMCanadian Imperial Bank(0.45)11 per month 0.98 (0.01) 1.57 (1.54) 9.58 
BMOBank of Montreal(0.91)13 per month 0.00 (0.13) 1.65 (1.59) 11.49 
BNSBank of Nova(0.40)10 per month 1.03 (0.09) 1.45 (1.91) 4.31 
CSCredit Suisse Group 0.00 0 per month 0.00 (0.19) 3.53 (5.49) 53.23 

Bank of America Additional Predictive Modules

Most predictive techniques to examine Bank price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Bank using various technical indicators. When you analyze Bank charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.

About Bank of America Predictive Indicators

The successful prediction of Bank of America stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Bank of America, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Bank of America based on analysis of Bank of America hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Bank of America's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Bank of America's related companies.
 2021 2022 2023 2024 (projected)
Dividend Yield0.02130.03190.03360.0373
Price To Sales Ratio4.242.832.742.18

Story Coverage note for Bank of America

The number of cover stories for Bank of America depends on current market conditions and Bank of America's risk-adjusted performance over time. The coverage that generates the most noise at a given time depends on the prevailing investment theme that Bank of America is classified under. However, while its typical story may have numerous social followers, the rapid visibility can also attract short-sellers, who usually are skeptical about Bank of America's long-term prospects. So, having above-average coverage will typically attract above-average short interest, leading to significant price volatility.

Bank of America Short Properties

Bank of America's future price predictability will typically decrease when Bank of America's long traders begin to feel the short-sellers pressure to drive the price lower. The predictive aspect of Bank of America often depends not only on the future outlook of the potential Bank of America's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Bank of America's indicators that are reflective of the short sentiment are summarized in the table below.
Common Stock Shares Outstanding8.1 B
Cash And Short Term Investments-27.9 B

Complementary Tools for Bank Stock analysis

When running Bank of America's price analysis, check to measure Bank of America's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bank of America is operating at the current time. Most of Bank of America's value examination focuses on studying past and present price action to predict the probability of Bank of America's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bank of America's price. Additionally, you may evaluate how the addition of Bank of America to your portfolios can decrease your overall portfolio volatility.
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