Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
Bank of America (BAC) closed at $32.28 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's 0.61% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.17%.
Coming into today, shares of the nation's second-largest bank had lost 13.13% in the past month. In that same time, the Finance sector lost 0.99%, while the S&P 500 gained 0.89%.
Investors will be hoping for strength from Bank of America as it approaches its next earnings release, which is expected to be January 13, 2023. On that day, Bank of America is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 2.44%. Our most recent consensus estimate is calling for quarterly revenue of $24.46 billion, up 10.9% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.18 per share and revenue of $95.01 billion. These totals would mark changes of -10.92% and +6.62%, respectively, from last 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.39% lower. Bank of America is currently a Zacks Rank #3 (Hold).
In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 10.29. For comparison, its industry has an average Forward P/E of 10.1, which means Bank of America is trading at a premium to the group.
It is also worth noting that BAC currently has a PEG ratio of 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BAC's industry had an average PEG ratio of 1.26 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
