Bank of America (BAC) closed the most recent trading day at $34.69, moving +1.67% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.2%.
Coming into today, shares of the nation's second-largest bank had lost 3.83% in the past month. In that same time, the Finance sector lost 8.14%, while the S&P 500 lost 9.94%.
Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. This is expected to be October 17, 2022. On that day, Bank of America is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 5.88%. Meanwhile, our latest consensus estimate is calling for revenue of $23.58 billion, up 3.59% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.20 per share and revenue of $93.59 billion. These totals would mark changes of -10.36% and +5.03%, respectively, from last year.
Any recent changes to analyst estimates for Bank of America should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.31% lower. Bank of America currently has a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 10.67. This represents a premium compared to its industry's average Forward P/E of 10.31.
Meanwhile, BAC's PEG ratio is currently 1.52. 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. The Banks - Major Regional was holding an average PEG ratio of 1.25 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.
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