In the latest trading session, Bank of America (BAC) closed at $48.71, marking a +1.16% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.48%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.94%.
Heading into today, shares of the nation's second-largest bank had gained 7.84% over the past month, outpacing the Finance sector's gain of 3.5% and the S&P 500's gain of 5.13%.
Market participants will be closely following the financial results of Bank of America in its upcoming release. The company plans to announce its earnings on July 14, 2025. In that report, analysts expect Bank of America to post earnings of $0.87 per share. This would mark year-over-year growth of 4.82%. In the meantime, our current consensus estimate forecasts the revenue to be $26.61 billion, indicating a 4.87% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.67 per share and a revenue of $107.97 billion, demonstrating changes of +11.89% and +5.97%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Bank of America. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.34% lower within the past month. As of now, Bank of America holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Bank of America is holding a Forward P/E ratio of 13.13. This valuation marks a discount compared to its industry average Forward P/E of 16.24.
We can additionally observe that BAC currently boasts a PEG ratio of 1.31. 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. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.33.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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