In the latest trading session, Bank of America (BAC) closed at $51.56, marking a +1.1% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.98%. Elsewhere, the Dow saw an upswing of 1.08%, while the tech-heavy Nasdaq appreciated by 0.88%.
Coming into today, shares of the nation's second-largest bank had lost 1.47% in the past month. In that same time, the Finance sector lost 0.25%, while the S&P 500 lost 2.79%.
Investors will be eagerly watching for the performance of Bank of America in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.97, reflecting a 18.29% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $27.29 billion, showing a 7.68% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.79 per share and a revenue of $109.24 billion, indicating changes of +15.55% and +7.22%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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.
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 has moved 0.69% higher within the past month. At present, Bank of America boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Bank of America is currently being traded at a Forward P/E ratio of 13.44. This expresses a discount compared to the average Forward P/E of 15.83 of its industry.
We can also see that BAC currently has a PEG ratio of 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.03.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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