Bank of America: Attractive Opportunities for Investors

Bank of America Corporation (NYSE:BAC) is currently one of the best 15 passive income stocks to buy. On November 7, Morgan Stanley maintained an Overweight rating for Bank of America, setting a target price of $70. The company was highlighted as one of the top picks in the large-scale banking group during the investor day.

The analyst pointed out that the company management has laid out a roadmap for a tangible return on equity of between 16% and 18% and plans to reduce the expense ratio to between 55% and 59% with continuous revenue growth. Additionally, it was noted that the bank is entering a period of sustained operating leverage, which will help Bank of America outpace its competitors.

During the investor day on November 5, CEO Brian Moynihan emphasized that he expects earnings to grow at a strong pace and revenues to rise similarly. In the Global Corporate and Investment Banking segment, it was stated that the bank aims to increase its corporate banking revenue by a mid-single-digit compound rate. A portion of this growth is expected to come from the approximately 20% target in Latin America and 40% target in Europe, the Middle East, and Africa.

Bank of America has been expanding its presence across the U.S. over the last decade. From 2014 to 2024, it has invested over $5 billion to build financial centers and open new markets.

Bank of America Corporation (NYSE:BAC), as one of the largest financial institutions in the country, offers a wide range of banking, investment, and financial management services to individuals, small businesses, and corporations worldwide.

When considering Bank of America's investment potential, it is worth noting that some artificial intelligence (AI) stocks may offer a higher return with less risk. If you are looking for an AI stock that is significantly undervalued and could greatly benefit from tariffs from the Trump era and the trend of bringing companies back to the country, you can check out our free report on the best short-term AI stocks.