Bank of America (BAC) ended the recent trading session at $47.46, demonstrating a +1.3% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.
Heading into today, shares of the nation's second-largest bank had gained 6.33% over the past month, outpacing the Finance sector's gain of 2.69% and the S&P 500's gain of 5.12%.
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 expected to report EPS of $0.89, up 7.23% from the prior-year quarter. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $3.69 per share and a revenue of $108.14 billion, signifying shifts of +12.5% and +6.13%, respectively, from the last year.
Any recent changes to analyst estimates for Bank of America should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 moved 0.37% higher. Currently, Bank of America is carrying a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 12.69. This signifies a discount in comparison to the average Forward P/E of 16.07 for its industry.
We can also see that BAC currently has a PEG ratio of 1.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Investment Bank was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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