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Bank of America (BAC) Stock Sinks As Market Gains: What You Should Know

Bank of America (BAC) closed the most recent trading day at $32.44, moving -0.92% from the previous trading session. This change lagged the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.01%.

Heading into today, shares of the nation's second-largest bank had lost 10.35% over the past month, lagging the Finance sector's gain of 2.12% and the S&P 500's gain of 3.49% in that time.

Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be January 13, 2023. In that report, analysts expect Bank of America to post earnings of $0.85 per share. This would mark year-over-year growth of 3.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.44 billion, up 10.81% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.19 per share and revenue of $94.93 billion, which would represent changes of -10.64% and +6.53%, respectively, from the prior year.

Any recent changes to analyst estimates for Bank of America should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate has moved 0.22% lower within the past month. Bank of America is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 10.27. This represents a premium compared to its industry's average Forward P/E of 10.21.

We can also see that BAC currently has a PEG ratio of 1.47. 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 industry currently had an average PEG ratio of 1.24 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.

To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.

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