Bank of America (BAC) closed the most recent trading day at $41.49, moving -0.58% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.87%.
Prior to today's trading, shares of the nation's second-largest bank had lost 8.41% over the past month. This has lagged the Finance sector's loss of 3.41% and the S&P 500's loss of 5.59% in that time.
Investors will be eagerly watching for the performance of Bank of America in its upcoming earnings disclosure. On that day, Bank of America is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 3.61%. Alongside, our most recent consensus estimate is anticipating revenue of $26.73 billion, indicating a 3.55% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.69 per share and a revenue of $108.4 billion, demonstrating changes of +12.5% and +6.39%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Bank of America. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% downward. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Bank of America is currently being traded at a Forward P/E ratio of 11.32. This indicates a discount in contrast to its industry's Forward P/E of 14.22.
Investors should also note that BAC has a PEG ratio of 1.13 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Investment Bank was holding an average PEG ratio of 1.02 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Bank of America Corporation (BAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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