In the latest trading session, Bank of America (BAC) closed at $44.69, marking a -0.18% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.39%. Elsewhere, the Dow saw a downswing of 0.27%, while the tech-heavy Nasdaq depreciated by 0.38%.
Shares of the nation's second-largest bank witnessed a gain of 21.26% over the previous month, beating the performance of the Finance sector with its gain of 9.56% and the S&P 500's gain of 13.07%.
Analysts and investors alike will be keeping a close eye on the performance of Bank of America in its upcoming earnings disclosure. The company's earnings report is set to go public on July 14, 2025. The company is forecasted to report an EPS of $0.90, showcasing an 8.43% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $26.72 billion, indicating a 5.3% upward movement from the same quarter last 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's also important for investors to be aware of any recent modifications to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.47% increase. Bank of America is currently a Zacks Rank #3 (Hold).
Digging into valuation, Bank of America currently has a Forward P/E ratio of 12.17. This valuation marks a discount compared to its industry's average Forward P/E of 15.25.
Meanwhile, BAC's PEG ratio is currently 1.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 197, finds itself in the bottom 21% echelons of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many 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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