In the latest close session, Bank of America (BAC) was down 3.1% at $47.15. The stock's change was less than the S&P 500's daily loss of 0.07%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.03%.
The nation's second-largest bank's stock has climbed by 8.45% in the past month, exceeding the Finance sector's gain of 2.38% and the S&P 500's gain of 3.94%.
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 16, 2025. The company is predicted to post an EPS of $0.87, indicating a 4.82% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $26.61 billion, indicating a 4.87% increase compared to the same quarter of the previous 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Bank of America. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 0.34% fall in the Zacks Consensus EPS estimate. As of now, Bank of America holds 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 13.27. Its industry sports an average Forward P/E of 16.12, so one might conclude that Bank of America is trading at a discount comparatively.
It's also important to note that BAC currently trades at a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Financial - Investment Bank industry stood at 1.35 at the close of the market yesterday.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 23% 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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