Bank of America (BAC) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest trading session, Bank of America (BAC) closed at $30.85, marking a -0.36% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.39%. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.2%.
Coming into today, shares of the nation's second-largest bank had gained 11.85% in the past month. In that same time, the Finance sector gained 7.81%, while the S&P 500 gained 5.28%.
Analysts and investors alike will be keeping a close eye on the performance of Bank of America in its upcoming earnings disclosure. The company's earnings report is set to go public on January 12, 2024. The company's upcoming EPS is projected at $0.72, signifying a 15.29% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $24.11 billion, down 1.71% from the prior-year quarter.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $100.78 billion. These results would represent year-over-year changes of +8.15% and +6.14%, respectively.
Investors might also notice recent changes to analyst estimates for Bank of America. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% increase. Bank of America currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Bank of America is presently trading at a Forward P/E ratio of 8.98. This expresses a discount compared to the average Forward P/E of 9.37 of its industry.
One should further note that BAC currently holds a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.54.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
