In the latest trading session, Bank of America (BAC) closed at $53.65, marking a +1.25% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.54%. Elsewhere, the Dow saw an upswing of 0.61%, while the tech-heavy Nasdaq appreciated by 0.65%.
Shares of the nation's second-largest bank witnessed a loss of 0.08% over the previous month, trailing the performance of the Finance sector with its gain of 0.28%, and outperforming the S&P 500's loss of 0.8%.
The investment community will be paying close attention to the earnings performance of Bank of America in its upcoming release. The company is expected to report EPS of $0.97, up 18.29% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $27.29 billion, indicating a 7.68% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.8 per share and a revenue of $109.24 billion, signifying shifts of +15.85% and +7.22%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Bank of America. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.94% upward. Bank of America is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Bank of America is currently exchanging hands at a Forward P/E ratio of 13.94. This signifies a discount in comparison to the average Forward P/E of 16.7 for its industry.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 26, positioning it in the top 11% 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.
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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