In the latest trading session, Bank of America (BAC) closed at $25.76, marking a +0.98% move from the previous day. This change outpaced the S&P 500's 0.48% gain on the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 0.8%.
Heading into today, shares of the nation's second-largest bank had gained 3.78% over the past month, outpacing the Finance sector's loss of 1.39% and the S&P 500's loss of 2.09% in that time.
BAC will be looking to display strength as it nears its next earnings release, which is expected to be January 16, 2019. The company is expected to report EPS of $0.63, up 34.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.28 billion, up 9.03% from the year-ago period.
Investors should also note any recent changes to analyst estimates for BAC. Recent revisions tend to reflect the latest near-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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.7% lower. BAC is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, BAC is currently trading at a Forward P/E ratio of 9.05. Its industry sports an average Forward P/E of 9.75, so we one might conclude that BAC is trading at a discount comparatively.
Investors should also note that BAC has a PEG ratio of 1.13 right now. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.03 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 38% of all 250+ industries.
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.
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
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