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

Bank of America (BAC) ended the recent trading session at $39.76, demonstrating a +0.28% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.27%. On the other hand, the Dow registered a loss of 0.51%, and the technology-centric Nasdaq decreased by 0.19%.

Shares of the nation's second-largest bank witnessed a gain of 3.34% over the previous month, trailing the performance of the Finance sector with its gain of 5.74% and the S&P 500's gain of 7.34%.

Investors will be eagerly watching for the performance of Bank of America in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.81, signifying a 7.95% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $25.26 billion, up 0.24% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.23 per share and a revenue of $101.43 billion, signifying shifts of -5.56% and +2.89%, respectively, from the last year.

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Any recent changes to analyst estimates for Bank of America should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.25% upward. Currently, Bank of America is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Bank of America is currently being traded at a Forward P/E ratio of 12.29. This indicates a premium in contrast to its industry's Forward P/E of 11.64.

One should further note that BAC currently holds a PEG ratio of 1.76. 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. The Banks - Major Regional industry had an average PEG ratio of 1.75 as trading concluded yesterday.

The Banks - Major Regional industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 38, finds itself in the top 16% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Bank of America Corporation (BAC) : Free Stock Analysis Report

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