BAC

Investing.com -- Bank of America highlighted two of its preferred picks among European airline stocks as carriers prepare to report third-quarter results, with both selections earning Buy ratings based on pricing resilience and balance sheet strength amid industry headwinds. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » The broker's constructive stance comes as the sector faces pressure from elevated fuel costs and geopolitical uncertainties, with BofA's analysts emphasizing companies best positioned to navigate near-term challenges while delivering shareholder returns. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » IAG BofA enters IAG's November 6 results with a constructive view, naming it a top pick with a Buy rating. The investment case centers on transatlantic strength, as U.S. carriers push up pricing due to lower fuel hedging compared to European peers, which should keep yields firm on Atlantic routes. IAG is expected to return to modest capacity growth after contracting last quarter, while ex-fuel unit costs remain broadly contained. BofA favors IAG's balance sheet, margins and returns at a time when fuel costs and Middle East-related earnings pressure weigh on the sector. The broker also sees room for additional shareholder returns. BofA expects third-quarter pre-exceptional EBIT of approximately €1.88 billion, roughly 2% above consensus, with full-year EBIT broadly in line. Key items to watch include corporate and leisure demand, forward bookings, fuel and hedging commentary, transatlantic momentum and the ex-fuel cost outlook. Ryanair BofA is equally upbeat on Ryanair, its other top pick, with the central theme being that pricing is better than feared. Summer fares were soft, but close-in bookings picked up in September and Ryanair management expects modestly positive winter fares year on year. BofA sits above consensus on that view, helped by capacity cuts across the three big low-cost carriers, which should support the supply-demand balance in short-haul Europe. The main vulnerability is fuel, as forward jet fuel prices for 2027 sit well above BofA's forecast and Ryanair has little hedged beyond this year, leaving cost risk skewed upward. BofA offsets that concern with Ryanair's balance sheet strength and its ability to gain share when the industry is under strain. The broker also notes that the Boeing Max 10 delivery programme remains on track. BofA forecasts third-quarter EBIT of approximately €1.87 billion, roughly 4% above consensus. Original Article BofA Names Top EU Airline Stocks Ahead of Earnings Season SpaceX cell-site ambitions lift tower stocks and weigh on carriers S&P futures slip amid AI-driven tech jitters, oil price spike

Investing.com -- Ahead of earnings, BofA Securities prefers STMicroelectronics NV (EPA:STMPA), Infineon (ETR:IFXGn), Tower Semiconductor (TASE:TSEM) and Nordic Semiconductor (OL:NOD) over Melexis. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » For the first three, the broker expects modest beats and raises, with limited upside to gross margins and slight upside to revenues coming from data center/AI as well as Autos and Industrial. A common thread across the group is pricing. BofA notes that better pricing for large OEMs, meaning flat to up 5% versus the traditional 1-5% price decline, is already expected, so any upside beyond that would come as a positive surprise. STMicroelectronics is expected to deliver a modest beat and raise, with data center as the main storyline. BofA thinks the market may expect STM to lift its DC revenue guide to $3 billion for CY27, in line with BofA's own estimate, driven by Optical. The harder question is margins. BofA believes investors need confidence that gross margins can move above 40% next year, which could come from mix, since BofA believes optical gross margins are above 50%, and/or from pricing for large OEMs. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » Infineon also looks set for a modest beat and raise, and here the AI angle is about power. BofA thinks the market may expect IFX to guide combined FY27E AI and server CPU power revenues of €3.5-4 billion, while BofA's own estimate of €4.1 billion sits above the top of that range. Pricing is where the picture becomes more nuanced. BofA expects the Autos business, which makes up 75% of the ATV division, to pass on 5-10% inflation from foundries. The Power business, the other 25% of ATV, may find it harder. BofA believes IFX could struggle to raise prices for tier-1 customers by more than 5%, given oversupply in IGBTs and political sensitivities around the Dresden fab's subsidies. Tower Semiconductor is grouped with STM and IFX in expecting a modest beat and raise, reflecting the limited gross margin upside and slight revenue upside described above. The note offers no further company-specific detail on TSEM, so nothing beyond that is stated here. Nordic Semiconductor is the one name with an explicit rating in the note: BofA reiterates its Buy. The thesis rests on continued EBITDA improvement, driven by operational leverage and mix. The recent trend supports it, with EBITDA margin rising to 18.1% in the third quarter from 15.4% in the second. The contrast with Melexis explains why these four are favored. BofA maintains an "underperform" rating on Melexis because of its greater reliance on global SAAR units, which have recently been affected by weaker demand in China and Europe, and because its auto growth has continued to lag peers. Original Article BofA Names Preferred Picks Among European Chipmakers Ahead of Earnings Cboe Global Markets stock gains on $550M buyback boost Meta's capital-raising plans expose a major weakness in the AI boom

Investing.com -- Bank of America analysts have identified a challenging earnings environment for U.S. chemical stocks heading into third-quarter results, citing weak demand and margin pressures across the sector. However, the firm highlighted five stocks that stand out despite the difficult backdrop. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » In a note to clients, BofA analysts warned that calendar third-quarter 2026 earnings present a "tough risk-reward setup" for most companies in their coverage universe. The analysts pointed to multiple headwinds affecting both upstream and downstream chemical producers, including compressed margins, weak demand, and unfavorable currency movements. For upstream chemical companies, demand has proven quite weak, compressing margins over the monomer level. Some producers have faced difficulty passing through rising raw material and energy costs to customers. Downstream companies are experiencing the tightest window in price-cost spreads as inflation from late first quarter and second quarter finally impacts income statements. Additional pressures include weaker automotive builds, higher interest rates, and soft residential investment. These factors are eliminating any conservatism companies may have built into their outlooks. A stronger U.S. dollar moving into the fourth quarter adds further headwinds to the sector. Despite the cautious overall outlook, BofA analysts expressed positive views on five stocks heading into results: Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » 1. Celanese Corporation (NYSE:CE) - The firm identified CE as one of the few chemical stocks with favorable risk-reward characteristics in the current earnings environment. 2. Ecolab Inc (NYSE:ECL) - ECL was highlighted as a stock where BofA maintains a positive predisposition ahead of third-quarter results. 3. Element Solutions Inc (NYSE:ESI) - ESI stands among the select group of chemical names the firm views favorably entering the reporting period. 4. Dow Inc (NYSE:DOW) - Despite sector-wide challenges, DOW was singled out as a name with better positioning for the upcoming earnings season. 5. International Flavors & Fragrances Inc (NYSE:IFF) - IFF rounds out the list of stocks where BofA analysts see relatively better prospects compared to the broader chemical sector. Original Article BofA flags five chemical stocks amid tough Q3 earnings outlook European shares rise on earnings support; Big Tech results awaited Nasdaq up 1% as tech lifted by SpaceX, Tesla on Musk's hint at possible merger

CHARLOTTE, N.C., Oct. 21, 2026 /PRNewswire/ -- Bank of America Corporation today announced the Board of Directors declared a regular quarterly cash dividend on Bank of America common stock of $0.32 per share, payable on December 24, 2026 to shareholders of record as of December 4, 2026. The Board also declared a regular quarterly cash dividend of $1.75 per share on the 7% Cumulative Redeemable Preferred Stock, Series B. The dividend is payable on January 25, 2027 to shareholders of record as of January 11, 2027. Bank of America Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving more than 69 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts. Investors may contact Lee McEntire, Bank of America Phone: 1.980.388.6780 [email protected] Jonathan G. Blum, Bank of America (Fixed Income) Phone: 1.212.449.3112 [email protected] Reporters may contact Jocelyn Seidenfeld, Bank of America Phone: 1.646.743.3356 [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/bank-of-america-declares-fourth-quarter-2026-stock-dividends-302915305.html

Quarterly earnings results are a good time to check in on a company's progress, especially compared to its peers in the same sector. Today we are looking at Bank of America (NYSE:BAC) and the best and worst performers in the diversified banks industry. At their core, diversified banks take in deposits and engage in various forms of lending, which means revenue is generated through interest rate spreads (difference between loan and deposit rates) and fees. Other revenue comes from adjacent services such as wealth management, card and account fees, and products such as annuities. These institutions benefit from rising interest rates that improve NIMs (net interest margins), digital transformation reducing operational costs, and expanding wealth management services as populations age. However, they face headwinds including fintech competition disrupting traditional models (how disruptive is crypto?), stringent regulatory requirements increasing compliance costs, and cybersecurity threats requiring substantial technology investments. Economic downturns also pose risks through potential loan defaults and compressed margins during accommodative monetary policy periods. The 7 diversified banks stocks we track reported a slower Q3. As a group, revenues missed analysts' consensus estimates by 0.7%. While some diversified banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.8% since the latest earnings results. Tracing its roots back to 1784 and now serving approximately 67 million consumer and small business clients, Bank of America (NYSE:BAC) is a global financial institution that provides banking, investing, asset management, and risk management products and services to individuals, businesses, and governments. Bank of America reported revenues of $30.1 billion, up 3.1% year on year. This print fell short of analysts' expectations by 1.5%. Overall, it was a softer quarter for the company with a significant miss of analysts' EPS estimates and a slight miss of analysts' tangible book value per share estimates. The market seems disappointed with the results as the stock is down 6.6% since reporting and currently trades at $50.41. Read our full report on Bank of America here, it's free. With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE:C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments. Citigroup reported revenues of $23.87 billion, up 7.9% year on year, outperforming analysts' expectations by 0.6%. The business had a strong quarter with an impressive beat of analysts' net interest income estimates and a beat of analysts' EPS estimates. Citigroup pulled off the biggest analyst estimate beat of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.7% since reporting. It currently trades at $121.75. Is now the time to buy Citigroup? Access our full analysis of the earnings results here, it's free. Founded during the California Gold Rush in 1852 to provide banking and express delivery services to miners and merchants, Wells Fargo (NYSE:WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals and businesses. Wells Fargo reported revenues of $21.94 billion, up 2% year on year, falling short of analysts' expectations by 1.7%. It was a softer quarter as it posted a miss of analysts' tangible book value per share estimates and a miss of analysts' EPS estimates. Wells Fargo delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.5% since the results and currently trades at $82.08. Read our full analysis of Wells Fargo's results here. Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE:PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network. PNC Financial Services Group reported revenues of $6.62 billion, up 10.7% year on year. This print was in line with analysts' expectations. More broadly, it was a mixed quarter as it also logged a solid beat of analysts' tangible book value per share estimates but a slight miss of analysts' net interest income estimates. PNC Financial Services Group achieved the fastest revenue growth among its peers. The stock is flat since reporting and currently trades at $216.05. Read our full, actionable report on PNC Financial Services Group here, it's free. With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE:USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses. U.S. Bancorp reported revenues of $8.04 billion, up 9.5% year on year. This result met analysts' expectations. More broadly, it was a slower quarter as it produced a significant miss of analysts' tangible book value per share estimates and net interest income in line with analysts' estimates. The stock is up 3.1% since reporting and currently trades at $58.02. Read our full, actionable report on U.S. Bancorp here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

KeyCorp's KEY third-quarter 2026 earnings from continuing operations of 51 cents per share surpassed the Zacks Consensus Estimate of 46 cents. The bottom line reflected a 24.4% rise from the prior-year quarter. Results primarily benefited from higher net interest income (NII) and non-interest income. Higher average loan balances, along with lower provisions, were other tailwinds. However, higher expenses hurt the results to some extent. Net income from continuing operations attributable to common shareholders was $537 million, up from $454 million in the prior-year quarter. Total revenues (taxable-equivalent or TE) increased 8.3% year over year to a record $2.05 billion. The top line surpassed the Zacks Consensus Estimate of $2.03 billion. NII (TE basis) jumped 9.6% from the prior-year quarter to $1.31 billion. The net interest margin (TE basis) from continuing operations expanded 20 basis points (bps) to 2.95%. Both metrics benefited from lower deposit costs as a result of declining interest rates and proactive deposit beta management, the reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher-yielding investments, an expanding balance sheet and a continued strategic shift toward higher-yielding commercial and industrial loans. These benefits were partially offset by the impact of lower interest rates on repricing earning assets. Non-interest income was $744 million, up 6% year over year. The rise was mainly driven by higher investment banking and debt placement fees, trust and investment services income, and cards and payments income. These were partially offset by lower commercial mortgage servicing fees. Non-interest expenses increased 5.8% year over year to $1.25 billion. The rise was predominantly due to an increase in personnel expenses, primarily related to continued investments in people, employee benefits and incentive compensation associated with non-interest income growth. These were partially offset by a decline in other expenses. At the end of the third quarter, average total loans were $111.59 billion, up 1.4% from the previous quarter and 5% year over year. Average total deposits were $151.18 billion, up 2.4% sequentially and 0.5% year over year. The provision for credit losses was $61 million, down 43% from the prior-year quarter. Net loan charge-offs, as a percentage of average total loans, declined 10 bps year over year to 0.32%. Also, non-performing assets, as a percentage of period-end portfolio loans, other real estate-owned property assets and other non-performing assets, were 0.55%, down 8 bps. The allowance for loan and lease losses was $1.40 billion, down 3.2% year over year. KEY's tangible common equity to tangible assets ratio was 6.9% as of Sept. 30, 2026, down from 8.1% in the corresponding period of 2025. The Tier 1 risk-based capital ratio was 12.3%, down from 13.5%. The Common Equity Tier 1 ratio was 11.1%, down from 11.8% as of Sept. 30, 2025. In the reported quarter, KeyCorp repurchased shares worth $320 million at an average price of $22.57 per share. KeyCorp delivered record revenues and pre-provision net revenues in the third quarter of 2026. The company generated a return on tangible common equity exceeding 15%, reinforcing its confidence in achieving and sustaining a return on tangible common equity of 15% or more by the end of 2027. Along with this, robust commercial and industrial loan growth, balance sheet repositioning efforts and growth in fee-based businesses will likely support the company's top-line growth in the near term. However, higher non-interest expenses and declining capital ratios remain concerning. KeyCorp price-consensus-eps-surprise-chart | KeyCorp Quote KeyCorp currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Bank of America's BAC third-quarter 2026 adjusted earnings of $1.08 per share missed the Zacks Consensus Estimate of $1.11. In the prior-year quarter, the company reported earnings of $1.04. Bank of America witnessed dismal trading performance this time around due to weaker fixed-income trading. Similarly, amid weakness in advisory and debt underwriting activities, BAC's investment banking (IB) business performance was not good. While BAC's capital markets business performance was not impressive this time, year-over-year growth in NII drove total revenues. Provisions declined in the quarter on a year-over-year basis, which was a positive, but non-interest expenses increased, creating another major headwind. JPMorgan's JPM third-quarter 2026 adjusted earnings of $5.75 per share missed the Zacks Consensus Estimate of $5.94. After considering the net investment securities losses of 18 cents, earnings were $5.57 per share, up 9.9% from the year ago. JPM's reported net revenues of $50.17 billion rose 8% year over year. Strong equity trading performance, IB activity and loan growth supported revenues, while the fixed income trading business was subdued. While JPMorgan recorded a year-over-year rise in expenses in the quarter, it witnessed a decline in provisions, which aided results to some extent. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KeyCorp (KEY) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Truist Financial's TFC third-quarter 2026 adjusted earnings of $1.16 per share rose 11.5% from the prior-year quarter. However, the bottom line missed the Zacks Consensus Estimate by a penny. The reported quarter's results excluded a pre-tax loss of $1.4 billion or 90 cents per share on the sale of available-for-sale securities, along with a pre-tax loan loss reserve recapture of $581 million or 36 cents per share and a pre-tax impact of $106 million or 6 cents per share from the Regional Acceptance Corporation (RAC) loan sale. Third-quarter 2026 results benefited from higher net interest income (NII), record quarterly wealth management income and higher average deposits. Securities losses and higher non-interest expenses were the undermining factors. After considering the non-recurring items, net income available to common shareholders was $684 million, or 56 cents per share, compared with $1.35 billion, or $1.04 per share, in the prior-year quarter. Total adjusted taxable-equivalent revenues were $5.30 billion, rising 1.3% from the prior-year quarter. GAAP revenues of $3.75 billion declined from $5.19 billion a year ago. NII was $3.66 billion compared with $3.63 billion in the third quarter of 2025. Taxable-equivalent NII rose 0.7% year over year to $3.71 billion, driven by fixed asset and liability repricing, higher client deposit balances and higher loan balances, partly offset by lower loan spreads and unfavorable deposit mix. The net interest margin (NIM) contracted 1 basis point year over year to 3.00%. Non-interest income was $84 million, down substantially from $1.56 billion a year ago, primarily reflecting the securities losses and the RAC loan sale losses. Adjusted non-interest income increased 2.5% to $1.60 billion. Wealth management income rose 8.8% year over year to $407 million, card and treasury management fees increased 2.1% to $347 million, and lending-related fees grew 16.5% to $120 million. Investment banking (IB) and trading income was $324 million, up 0.3%. Non-interest expenses totaled $3.11 billion, up 3% from $3.01 billion a year ago. This was primarily due to higher personnel expenses, professional fees and outside processing costs. Adjusted non-interest expenses, excluding $40 million of RAC loan sale costs, were $3.07 billion, up 1.7%. Profitability metrics weakened alongside reported earnings. Return on average common equity was 4.7% and return on average tangible common equity was 7.2% in the quarter compared with 9% and 13.6%, respectively, in the prior-year period. The efficiency ratio deteriorated to 82.9% from 58.1% in the prior-year quarter. The company recorded a benefit for credit losses of $253 million against a provision of $436 million a year ago, reflecting a $581-million allowance release related to the RAC loan sale. The allowance for loan and lease losses was 1.25% of loans and leases held for investment, down from 1.54% a year ago. Net charge-offs (NCOs) were $629 million, up from $385 million in the year-ago quarter. The NCO ratio of 0.77% of average loans and leases increased 29 basis points year over year. Excluding RAC, the NCO ratio was 0.38%. Total non-performing assets were $1.34 billion as of Sept. 30, 2026, down from $1.63 billion a year earlier. Non-performing loans and leases were 0.40% of loans and leases held for investment, down 8 basis points year over year. Average loans and leases were $329.46 billion, up from $322.07 billion in the year-ago quarter. Average loans and leases held for investment were $325.52 billion, up 1.6% year over year. Period-end loans and leases held for investment were $323.93 billion. Average deposits were $410.70 billion, increasing 3.6% from $396.60 billion a year earlier. End-of-period deposits were $413.23 billion, up from $394.91 billion a year ago. The common equity Tier 1 ratio was 10.7% at the quarter-end, down 20 basis points sequentially and 30 basis points year over year. Truist Financial returned $1.8 billion to shareholders during the quarter through $0.6 billion of common dividends and $1.2 billion of share repurchases. For the fourth quarter of 2026, management expects taxable-equivalent revenues of $5.35 billion and NII of $3.65-$3.70 billion. The NII outlook reflects a $125-million reduction from the RAC loan sale and a $40-million increase from the securities repositioning. Non-interest expenses are projected to rise 2.5% sequentially. The company estimates an NCO ratio of 0.45% and an effective tax rate of 13.5%. Management expects $1 billion in share repurchases in the fourth quarter. The outlook excludes the impacts of potential strategic actions. Higher NII, growth in average deposits and record wealth management income supported Truist Financial's adjusted quarterly results. However, securities losses and increased non-interest expenses weighed on reported performance. The completed RAC loan sale improved asset quality metrics, while the planned LightStream loan sale represents a further portfolio action. Truist Financial Corporation price-consensus-eps-surprise-chart | Truist Financial Corporation Quote Truist Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Bank of America's BAC third-quarter 2026 adjusted earnings of $1.08 per share missed the Zacks Consensus Estimate of $1.11. In the prior-year quarter, the company reported earnings of $1.04. Bank of America witnessed dismal trading performance this time around due to weaker fixed-income trading. Similarly, amid weakness in advisory and debt underwriting activities, BAC's IB business performance was not good. While BAC's capital markets business performance was not impressive this time, year-over-year growth in NII drove total revenues. Provisions declined in the quarter on a year-over-year basis, which was a positive, but non-interest expenses increased, creating another major headwind. JPMorgan's JPM third-quarter 2026 adjusted earnings of $5.75 per share missed the Zacks Consensus Estimate of $5.94. After considering the net investment securities losses of 18 cents, earnings were $5.57 per share, up 9.9% from a year ago. JPM's reported net revenues of $50.17 billion rose 8% year over year. Strong equity trading performance, IB activity and loan growth supported revenues, while the fixed income trading business was subdued. While JPMorgan recorded a year-over-year rise in expenses in the quarter, it witnessed a decline in provisions, which aided the results to some extent. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Truist Financial Corporation (TFC) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bank of America stock barely budged after Q3 2026 earnings, closing at US$51.70, up just 0.6% after a tough few months that left the share price down about 13% over 30 days and roughly 16% over 90 days. The headline story is not the small price move. Instead, it is the pressure running through profitability, with basic earnings per share at US$0.93 and a cost to income ratio at 65.48%, indicating a tighter squeeze on what the bank keeps from every dollar of revenue. Love the Bank of America franchise but concerned about the earnings squeeze and high cost to income ratio? Take a look at the list of solid balance sheet and fundamentals stocks (25 results). - Total Revenue (Q3 2026 vs. Q3 2025): US$28,689m vs. US$26,793m (up about 7%) - Net Income Excl. Extra Items (Q3 2026 vs. Q3 2025): US$6,541m vs. US$8,040m (down about 19%) - Basic EPS (Q3 2026 vs. Q3 2025): US$0.93 vs. US$1.08 (fell about 14%) - Cost to Income Ratio (Q3 2026 vs. Q3 2025): 65.48% vs. 61.73% (higher cost intensity) Ask Charlie what Bank of America's NII upgrade really signals. Digital optimism around Bank of America rests on the idea that tech spend translates into better economics, not just nicer apps. "Bank of America's continued investment in digital engagement and AI-driven efficiencies remains a live driver, with plans to double the AI budget within a US$14b tech spend and more than 140 AI applications such as Erica and CashPro already reducing support needs, which could support revenue growth and net margins as the next wave of use cases rolls out." Q3 shows some traction. Wealth revenue rose about 13% with net income up roughly 22%, helped by strong advisory and record fee based assets. Asset management fees climbed 17%. That is consistent with better monetisation of high touch, digitally engaged clients. However, the group cost to income ratio at 65.48% and adjusted expenses near US$18.5b show the efficiency story is far from complete. Bears focus on whether Bank of America's growth plans get eaten up by compliance and tech spend. "Management has reset operating leverage expectations from a 300% to 400% improvement to a narrower 200% to 300% range. At the same time, expenses sit around US$18.6b per quarter and the AI budget is set to rise within a US$14b technology spend, which could limit future improvements in net margins and earnings." The Q3 print does give this concern some backing. Total expense reached US$19.7b, including a US$1.2b AML settlement that cut EPS by about US$0.17 and contributed to lower net income. Adjusted costs of about US$18.5b are broadly in line with the prior run rate. The cost to income ratio moved to 65.48%. Stronger NII of US$16.6b and solid consumer and wealth profits help offset this, yet margin pressure remains visible rather than resolved. One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all. Bank of America highlights that headline earnings and short term price moves can diverge. The real opportunity is in stocks that could be undervalued before the market reassesses them. - Company 1 - 46% below our estimate - builds on a relationship-focused banking model while integrating a large merger to capture productivity and fee gains. - Company 2 - 31% below our estimate - pushes a once niche beverage into mainstream shelves as retailers expand branded and private label offerings. - Company 3 - 35% below our estimate - uses a super app to deepen client activity while shifting toward secured, higher yielding credit exposure. That is three of the list. See all 32 potentially undervalued companies → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BAC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]