Is Bank of America Stock Underperforming the S&P 500?

Bank Of America Corp_ branch-by MivPiv via iStock

Sohini Mondal

Wed, February 25, 2026 at 1:37 AM GMT+9 2 min read

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BAC

-1.26%

^GSPC

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With a market cap of $372.9 billion, Bank of America Corporation (BAC) is a global financial institution that delivers a wide range of banking, investing, asset management, and financial products to consumers, businesses, institutions, and governments worldwide.

Companies valued at $200 billion or more are generally considered “mega-cap” stocks, and Bank of America fits this criterion perfectly. Operating through four core segments: Consumer Banking; Global Wealth & Investment Management; Global Banking; and Global Markets, the company serves clients from everyday retail customers to large multinational corporations.

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Shares of the Charlotte, North Carolina-based company have fallen 13.1% from its 52-week high of $57.55. Over the past three months, BAC stock has declined 3.7%, lagging behind the broader S&P 500 Index’s ($SPX) return of 2.6% during the same period.

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In the longer term, shares of the company have increased 12.5% over the past 52 weeks, underperforming the 15% gain of the SPX over the same time frame. Moreover, BAC stock has decreased 9.1% on a YTD basis, compared to the SPX’s marginal rise.

The stock has been trading above its 200-day moving average since early May 2025.

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Bank of America reported Q4 2025 results on Jan. 14. The company posted better-than-expected EPS of $0.98, alongside net interest income of $15.9 billion and noninterest income of $12.6 billion, both topping consensus expectations. The bank also issued a strong outlook, projecting 2026 net interest income growth of 5% - 7% ($63.7 billion - $65 billion) and ~200 basis points of operating leverage.

In comparison with its rival, Mastercard Incorporated (MA) stock has lagged behind BAC stock. MA stock has declined 13.6% on a YTD basis and 11.8% over the past 52 weeks.

Despite the stock’s underperformance relative to the SPX over the past year, analysts are bullish about its prospects. BAC stock has a consensus rating of “Strong Buy” from the 27 analysts covering the stock, and the mean price target of $61.70 is a premium of 23.1% to current levels.

_ On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com _

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