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Bank of America (BAC) shares recently suffered their steepest one-day drop since April 2025 after CEO Brian Moynihan warned that third-quarter investment banking fees could fall at least 10% while sales and trading revenue may be flat from a year ago. BAC stock fell 5.1% to $59.47 on Sept. 14, while the S&P 500 banking index dropped 2.7%.
Big banks tend to be cyclical, and this guidance simply shows a slower period for markets. In many ways, the market reaction was “overdone,” as Morgan Stanley noted. The stock trades near fair value on its usual metrics, and the selloff feels like a short-term blip. For long-term investors, Bank of America’s core loan and deposit growth, higher rates driving net interest income, and strong capital levels remain reassuring.
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So, do shares of Bank of America represent a buying opportunity now? I think so — or that the dip is at least worth monitoring, given BAC stock’s strengths.
Bank of America Stock Has Still Delivered in 2026
Bank of America stock is up about 6% year-to-date (YTD) and roughly 13% over the past 52 weeks. The company has shown stronger net interest income (NII), loan growth, and recovering trading and investment banking activity. The latest pullback came after management’s cautious Q3 outlook.
BAC stock trades at about 13.6 times earnings versus about 12 times for the sector median. Its price-to-book (P/B) ratio is about 1.5 times compared with 1.3 times for the sector median. The stock therefore carries a premium on both measures.
The Guidance Shock Could Be Temporary
Moynihan expects Q3 investment banking fees of $1.6 billion to $1.8 billion, down from about $2 billion a year earlier. Sales and trading revenue is expected near $5.4 billion, roughly flat year-over-year (YOY).
Still, management said the deal pipeline remains strong, and consumer spending is healthy. Bank of America also expects full-year net interest income growth at the upper end of its 6% to 8% range. That could cushion weaker fee income.
