Bank of America (BAC) ended the recent trading session at $44.65, demonstrating a +1.29% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.81%.
Shares of the nation's second-largest bank witnessed a gain of 7.2% over the previous month, beating the performance of the Finance sector with its gain of 2.5% and the S&P 500's gain of 4.61%.
Investors will be eagerly watching for the performance of Bank of America in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 14, 2025. The company's upcoming EPS is projected at $0.90, signifying an 8.43% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $26.72 billion, indicating a 5.3% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.68 per share and a revenue of $107.99 billion, demonstrating changes of +12.2% and +5.99%, respectively, from the preceding year.
It is also important to note the 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 company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, there's been a 0.36% rise in the Zacks Consensus EPS estimate. Bank of America presently features 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 11.98. This valuation marks a discount compared to its industry's average Forward P/E of 14.97.
We can also see that BAC currently has a PEG ratio of 1.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. BAC's industry had an average PEG ratio of 1.23 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 192, placing it within the bottom 22% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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