As a leader in the financial services industry, Bank of America (BAC -0.57%) has its hands in a wide range of markets. This includes consumer and commercial banking, capital markets, investment banking, and wealth management. The company's resilience is noteworthy, as it's been in operation for over a century.

Bank of America may have the attention of those considering allocating capital to such an important part of the economy. Is it smart for investors to buy this bank stock while it trades below $45? Here are three key factors to consider.

Don't make macro predictions

Investors believe that if interest rates are set to fall, then demand from borrowers for loans will rise. This is certainly a valid point. But I think it's an error to base your outlook on a macro prediction. Everyone was sure the Federal Reserve would consistently cut interest rates, but the central bank has held steady.

What's more, 2025 was supposed to be a strong year for deal-making and other capital-market activities. Thus far, this hasn't proven to be the case. To be clear, no one can make accurate macro calls consistently.

Signs are pointing to the economic backdrop weakening. Consumer confidence is at its lowest level in more than four years due to fears of sticky inflation and a possible recession. For Bank of America, net charge-offs jumped 23% year over year in the fourth quarter.

All this is to say that no one knows what the future will hold, at least from a macro perspective. This makes buying a financial institution like Bank of America -- which is very sensitive to economic forces beyond its control -- difficult for investors who need to have an idea of what direction things are headed in. There will always be uncertainty.

Strong competitive standing

Berkshire Hathaway owns dozens of stocks, but it holds a sizable 8.9% of Bank of America's outstanding shares. Buffett's endorsement of this high-quality business can give the average investor some confidence.

Bank of America has top market share in U.S. retail deposits, with just under $2 trillion at the end of last year. This gives the company an advantage, mainly because deposits are a low-cost source of funding that can power lending activity.

In today's tech-forward age, consumers crave a better experience. Bank of America deserves credit for its successful digital push. The business has 58 million verified digital users on the consumer side.

Bank of America's revenue comes from multiple segments, and there's an almost even split between net-interest income and non-interest income. Making money from diverse activities in this manner gives the business financial stability. It also reduces risk and ensures it has exposure to areas registering better growth.

Can Bank of America beat the market?

Since late October 2023, shares of Bank of America have climbed 64% (as of March 28), while the S&P 500 Index is up 36% in that stretch. The market's bullishness on the business might've stemmed from optimism about lower interest rates and a stronger economic backdrop.

The valuation is reasonable today. Investors can buy the stock at a price-to-earnings ratio of 12.8, in line with the trailing-five-year average. As a bonus, shareholders have benefited from a steady source of income. In the past decade, Bank of America's dividend payout has increased by an impressive 420%, and the current dividend yield sits at 2.5%.

The stock has lagged the S&P 500 in the past five years, and I'm unsure whether this trend will change. However, investors who want to scoop up a leading bank on the dip might still find Bank of America compelling at under $45 per share.