Bank of America (BAC) closed the most recent trading day at $46.30, moving +1.76% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.
Heading into today, shares of the nation's second-largest bank had gained 5.32% over the past month, outpacing the Finance sector's loss of 1.18% and the S&P 500's gain of 0.5%.
The investment community will be closely monitoring the performance of Bank of America in its forthcoming earnings report. The company is scheduled to release its earnings on July 14, 2025. The company's upcoming EPS is projected at $0.89, signifying a 7.23% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $26.71 billion, indicating a 5.23% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.68 per share and revenue of $108.14 billion, which would represent changes of +12.2% and +6.13%, respectively, from the prior 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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. As of now, Bank of America holds a Zacks Rank of #3 (Hold).
Looking at valuation, Bank of America is presently trading at a Forward P/E ratio of 12.36. This represents a discount compared to its industry average Forward P/E of 14.87.
It is also worth noting that BAC currently has a PEG ratio of 1.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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