Bank of America (BAC – Free Report) closed at $43.95 in the latest trading session, marking a +0.09% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.43%. On the other hand, the Dow registered a loss of 0.07%, and the technology-centric Nasdaq decreased by 0.9%.
Coming into today, shares of the nation’s second-largest bank had lost 6.65% in the past month. In that same time, the Finance sector lost 5.69%, while the S&P 500 lost 1.98%.
The investment community will be paying close attention to the earnings performance of Bank of America in its upcoming release. The company’s upcoming EPS is projected at $0.79, signifying a 12.86% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $25.25 billion, reflecting a 14.98% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.27 per share and a revenue of $101.82 billion, representing changes of -4.39% and +3.29%, respectively, from the prior year.
Investors might also notice 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, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Bank of America is currently being traded at a Forward P/E ratio of 13.44. For comparison, its industry has an average Forward P/E of 16.68, which means Bank of America is trading at a discount to the group.
We can additionally observe that BAC currently boasts a PEG ratio of 1.34. 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 1.37.
The Financial – Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 41, this industry ranks in the top 17% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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