Bank of America (BAC) closed the most recent trading day at $51.40, moving +1.46% from the previous trading session. This change outpaced the S&P 500's 0.1% loss on the day. Elsewhere, the Dow saw an upswing of 0.57%, while the tech-heavy Nasdaq depreciated by 0.33%.
Heading into today, shares of the nation's second-largest bank had gained 5.37% over the past month, outpacing the Finance sector's gain of 2.52% and the S&P 500's gain of 2.57%.
Market participants will be closely following the financial results of Bank of America in its upcoming release. The company plans to announce its earnings on October 15, 2025. The company is forecasted to report an EPS of $0.93, showcasing a 14.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $26.96 billion, indicating a 6.38% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.68 per share and revenue of $107.99 billion, which would represent changes of +12.2% and +5.99%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Bank of America. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% upward. Bank of America currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Bank of America is currently exchanging hands at a Forward P/E ratio of 13.76. This signifies a discount in comparison to the average Forward P/E of 17 for its industry.
Meanwhile, BAC's PEG ratio is currently 1.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.65.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 17, this industry ranks in the top 7% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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