Bank of America (NYSE: BAC) kicked off the latest earnings season last week by beating analysts' earnings estimates. The second-largest bank in the U.S. showed its resilience despite higher interest rates that have begun to drag on net interest income.

Its relatively cheap valuation and the prospect of a Federal Reserve pivot on interest rates could make Bank of America an appealing stock to scoop up. Here's what you should know first.

Bank of America, also known as BoA, is the second-largest bank in the U.S., and its diverse deposit base -- spread among industries, geographies, and customer classes -- provides a steady anchor to navigate whatever the economy throws at it. This diversity is important for the bank because its business is highly cyclical, meaning it generally performs well during economic expansion but can underperform during contractions and recessions.

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Source Fool.com