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Bank of America (BAC) Stock Moves -1.02%: What You Should Know

Zacks Equity Research
·3 mins read

Bank of America (BAC) closed the most recent trading day at $24.37, moving -1.02% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.4%. Elsewhere, the Dow lost 1.34%, while the tech-heavy Nasdaq lost 1.57%.

Heading into today, shares of the nation's second-largest bank had lost 7.23% over the past month, lagging the Finance sector's loss of 1.18% and the S&P 500's loss of 0.46% in that time.

BAC will be looking to display strength as it nears its next earnings release, which is expected to be October 14, 2020. On that day, BAC is projected to report earnings of $0.44 per share, which would represent a year-over-year decline of 21.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.59 billion, down 9.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.65 per share and revenue of $86.26 billion, which would represent changes of -40% and -5.46%, respectively, from the prior year.

Any recent changes to analyst estimates for BAC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Within the past 30 days, our consensus EPS projection has moved 2.61% higher. BAC is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that BAC has a Forward P/E ratio of 14.92 right now. For comparison, its industry has an average Forward P/E of 13.75, which means BAC is trading at a premium to the group.

It is also worth noting that BAC currently has a PEG ratio of 2.13. 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 2.13 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 200, which puts it in the bottom 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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