Bank of America (BAC) ended the recent trading session at $44.38, demonstrating a +1.12% swing from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily gain of 1.1%. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq increased by 1.35%.
The nation’s second-largest bank’s shares have seen a decrease of 7.6% over the last month, not keeping up with the Finance sector’s loss of 4.4% and the S&P 500’s gain of 0.22%.
The upcoming earnings release of Bank of America will be of great interest to investors. The company is forecasted to report an EPS of $0.79, showcasing a 12.86% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $25.25 billion, indicating a 14.98% upward movement from the same quarter last year.
BAC’s full-year Zacks Consensus Estimates are calling for earnings of $3.27 per share and revenue of $101.82 billion. These results would represent year-over-year changes of -4.39% and +3.29%, respectively.
It is also important to note the recent changes to analyst estimates for Bank of America. 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.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. At present, Bank of America boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 13.44. This expresses a discount compared to the average Forward P/E of 16.57 of its industry.
We can additionally observe that BAC currently boasts a PEG ratio of 1.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Financial – Investment Bank industry currently had an average PEG ratio of 1.37 as of yesterday’s close.
The Financial – Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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Bank of America Corporation (BAC) : Free Stock Analysis Report
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