Bank of America Corporation (BAC) Revises Interest-Rate Outlook

Bank of America Corporation (NYSE:BAC) is included in our list of the 10 Most Undervalued Value Stocks to Buy Now.

Bank of America Corporation (BAC) Revises Interest-Rate Outlook

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Following signs of a cooling U.S. economy, Bank of America Corporation (NYSE:BAC) revised its interest-rate outlook.

Reported on August 11, Bank of America Corporation (NYSE:BAC)’s strategist, Mark Cabana, reduced the year-end forecast for two-year Treasury yields to 3.5% from 3.75%. Meanwhile, the forecast for 10-year yields was trimmed to 4.25% from 4.5%. The strategist cited softer labor market data and shifting Federal Reserve risk assessments.

Furthermore, Bank of America Corporation (NYSE:BAC) sees the appointment of Stephen Miran as Fed governor as a catalyst that could tilt policy toward lower rates. While the bank expects no Fed action until the second half of 2026, the company’s rate team thinks there is a greater chance rates could fall sooner. Accordingly, the bank advises investors to buy longer-duration bonds. Meanwhile, market swaps indicate more than two rate cuts by December, with an 80% chance of a quarter-point cut as soon as next month.

With its Consumer, Wealth Management, Corporate, and Market segments, Bank of America Corporation (NYSE:BAC) offers financial products and services globally. It is included in our list of the most undervalued value stocks to buy.

While we acknowledge the potential of BAC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BAC and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.