Bank of America (BAC) closed at $48.66 in the latest trading session, marking a -2.27% move from the prior day. The stock's change was more than the S&P 500's daily loss of 2.71%. At the same time, the Dow lost 1.9%, and the tech-heavy Nasdaq lost 3.56%.
The nation's second-largest bank's shares have seen a decrease of 1.89% over the last month, not keeping up with the Finance sector's gain of 0.28% and the S&P 500's gain of 3.5%.
The upcoming earnings release of Bank of America will be of great interest to investors. The company's earnings report is expected 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%. Meanwhile, the latest consensus estimate predicts the revenue to be $27.12 billion, indicating a 7.01% 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 $108.2 billion, which would represent changes of +12.2% and +6.19%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Bank of America. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. Right now, Bank of America possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Bank of America is at present trading with a Forward P/E ratio of 13.52. This represents a discount compared to its industry average Forward P/E of 16.58.
It's also important to note that BAC currently trades at a PEG ratio of 1.93. 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. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.47.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 33, this industry ranks in the top 14% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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