Bank of America (BAC) closed at $27.60 in the latest trading session, marking a -0.14% move from the prior day. This move lagged the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the nation's second-largest bank had lost 3.02% over the past month. This has lagged the Finance sector's gain of 0.59% and the S&P 500's loss of 1.38% in that time.
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, 2023. The company is expected to report EPS of $0.80, down 1.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.05 billion, up 2.25% from the prior-year quarter.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.40 per share and revenue of $100.76 billion. These results would represent year-over-year changes of +6.58% and +6.12%, respectively.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.18% lower. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Bank of America currently has a Forward P/E ratio of 8.13. Its industry sports an average Forward P/E of 8.13, so we one might conclude that Bank of America is trading at a no noticeable deviation comparatively.
Also, we should mention that BAC has a PEG ratio of 1.16. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.
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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