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Bank of America (BAC) closed the most recent trading day at $35.93, moving -1.24% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.45%. Meanwhile, the Dow lost 1.75%, and the Nasdaq, a tech-heavy index, lost 3.52%.
Heading into today, shares of the nation's second-largest bank had gained 21.96% over the past month, outpacing the Finance sector's gain of 7.31% and the S&P 500's gain of 2.32% in that time.
BAC will be looking to display strength as it nears its next earnings release. On that day, BAC is projected to report earnings of $0.59 per share, which would represent year-over-year growth of 47.5%. Our most recent consensus estimate is calling for quarterly revenue of $21.02 billion, down 7.68% from the year-ago period.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $2.46 per share and revenue of $84.29 billion. These results would represent year-over-year changes of +31.55% and -1.45%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.24% higher. BAC is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, BAC is holding a Forward P/E ratio of 14.81. This represents a premium compared to its industry's average Forward P/E of 13.78.
We can also see that BAC currently has a PEG ratio of 2.12. 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 2.09 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
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