Why Bank of America (BAC) Outpaced the Stock Market Today
In the latest trading session, Bank of America (BAC) closed at $36.01, marking a +1.69% move from the previous day. This change outpaced the S&P 500's 0.63% gain on the day. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.82%.
The the stock of nation's second-largest bank has risen by 3.87% in the past month, leading the Finance sector's gain of 2.48% and the S&P 500's gain of 1.76%.
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 April 16, 2024. In that report, analysts expect Bank of America to post earnings of $0.77 per share. This would mark a year-over-year decline of 18.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.2 billion, down 4.04% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.15 per share and a revenue of $99.62 billion, signifying shifts of -7.89% and +1.05%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Bank of America. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.46% higher within the past month. As of now, Bank of America holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Bank of America has a Forward P/E ratio of 11.23 right now. This expresses a premium compared to the average Forward P/E of 10.74 of its industry.
It is also worth noting that BAC currently has a PEG ratio of 1.6. 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 average PEG ratio for the Banks - Major Regional industry stood at 1.54 at the close of the market yesterday.
The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
