10 Undervalued Stocks to Invest in According to Goldman Sachs

3. Bank of America Corporation (NYSE:BAC)

Forward Price-to-Earnings Multiple: 12.15x

Number of Hedge Fund Holders: 111

Bank of America Corporation (NYSE:BAC) is included in our list of the 10 Goldman Sachs undervalued stocks to invest in.

On January 15, 2026, Morgan Stanley reduced its price target on Bank of America Corporation (NYSE:BAC) from $68.00 to $64.00, while reiterating an ‘Overweight’ rating. The update came after the company posted solid Q4 results, beating consensus EPS by roughly 2%. However, the firm noted the share price drop following the results announcement, as management was expected to tighten its 55%-59% medium-term expense ratio to 54%-58%. The investment firm also touched upon the accounting change, which adds roughly $1.00 billion per quarter to fees, complicates comparisons, and tempers short-term sentiment despite the earnings beat.

The company’s January 14, 2026, earnings release featured diluted EPS of $0.98 versus $0.96 expected, net income of $7.60 billion, and revenue of $28.50 billion, slightly above consensus. The quarter marked trading strength, with sales and trading revenue rising 10% to $4.50 billion, driven by benefits from volatile markets. At the same time, net interest income (NII) rose 9.7% to $15.75 billion. Looking ahead, Bank of America Corporation (NYSE:BAC)’s management expects 7% NII growth in Q1 2026, while reaffirming 5%-7% growth for the full year 2026, with loan growth and easing deposit costs driving optimism.

Bank of America Corporation (NYSE:BAC), a diversified U.S. financial institution, offers consumer banking, wealth management, investment banking, and global market services to individuals, corporations, and institutional clients.