In the latest close session, Bank of America (BAC) was up +1.68% at $50.29. This change outpaced the S&P 500's 0.27% gain on the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.37%.
Shares of the nation's second-largest bank witnessed a gain of 7.15% over the previous month, beating the performance of the Finance sector with its gain of 2.38%, and the S&P 500's gain of 1.85%.
Analysts and investors alike will be keeping a close eye on the performance of Bank of America in its upcoming earnings disclosure. The company's earnings report is set to go public on October 15, 2025. In that report, analysts expect Bank of America to post earnings of $0.94 per share. This would mark year-over-year growth of 16.05%. Simultaneously, our latest consensus estimate expects the revenue to be $26.9 billion, showing a 6.15% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.68 per share and a revenue of $107.9 billion, representing changes of +12.2% and +5.9%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Bank of America. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Bank of America holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Bank of America is holding a Forward P/E ratio of 13.43. This indicates a discount in contrast to its industry's Forward P/E of 16.26.
It is also worth noting that BAC currently has a PEG ratio of 1.92. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.58.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 16, positioning it in the top 7% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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