Bank of America (BAC – Free Report) closed at $41.44 in the latest trading session, marking a +1.35% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. Meanwhile, the Dow experienced a rise of 0.85%, and the technology-dominated Nasdaq saw an increase of 0.31%.
Heading into today, shares of the nation’s second-largest bank had lost 12.93% over the past month, lagging the Finance sector’s loss of 4.63% and the S&P 500’s loss of 7.69% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Bank of America in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.80, showcasing a 3.61% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $26.71 billion, showing a 3.47% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.68 per share and a revenue of $108.36 billion, representing changes of +12.2% and +6.36%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there’s been a 0.47% fall in the Zacks Consensus EPS estimate. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Bank of America is currently exchanging hands at a Forward P/E ratio of 11.12. This expresses a discount compared to the average Forward P/E of 12.82 of its industry.
Meanwhile, BAC’s PEG ratio is currently 1.11. 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 1.04.
The Financial – Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 15, this industry ranks in the top 6% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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