Bank of America (BAC) closed at $33.90 in the latest trading session, marking a -0.38% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.67%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq lost 0.14%.
Prior to today's trading, shares of the nation's second-largest bank had gained 0.65% over the past month. This has lagged the Finance sector's gain of 3.19% and the S&P 500's gain of 3.65% in that time.
Bank of America will be looking to display strength as it nears its next earnings release. On that day, Bank of America is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 4.71%. Meanwhile, our latest consensus estimate is calling for revenue of $23.58 billion, up 3.59% from the prior-year quarter.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.21 per share and revenue of $93.59 billion. These results would represent year-over-year changes of -10.08% and +5.03%, respectively.
Investors should also note any recent changes to analyst estimates for Bank of America. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.69% lower. Bank of America is currently sporting 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 10.6 right now. Its industry sports an average Forward P/E of 10.18, so we one might conclude that Bank of America is trading at a premium comparatively.
We can also see that BAC currently has a PEG ratio of 1.51. 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. BAC's industry had an average PEG ratio of 1.31 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
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