In the latest close session, Bank of America (BAC) was up +1.01% at $54.08. The stock's change was more than the S&P 500's daily gain of 0.68%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.33%.
The stock of nation's second-largest bank has fallen by 0.17% in the past month, lagging the Finance sector's gain of 1.58% and the S&P 500's gain of 1.8%.
Market participants will be closely following the financial results of Bank of America in its upcoming release. The company's upcoming EPS is projected at $0.97, signifying a 18.29% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $27.29 billion, indicating a 7.68% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.8 per share and a revenue of $109.24 billion, demonstrating changes of +15.85% and +7.22%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Bank of America. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.47% higher. Currently, Bank of America is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Bank of America is presently being traded at a Forward P/E ratio of 14.08. This signifies a discount in comparison to the average Forward P/E of 17.94 for its industry.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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