Bank of America (BAC) closed at $28.58 in the latest trading session, marking a +0.85% move from the prior day. This change outpaced the S&P 500's 1.12% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 3.35%.
Heading into today, shares of the nation's second-largest bank had lost 4.77% over the past month, lagging the Finance sector's loss of 0.9% and the S&P 500's gain of 1.61% in that time.
Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. On that day, Bank of America is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 17.81%. Our most recent consensus estimate is calling for quarterly revenue of $25.23 billion, up 11.21% from the year-ago period.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $100.92 billion. These results would represent year-over-year changes of +7.21% and +6.29%, respectively.
Investors might also notice recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 1.44% higher within the past month. Bank of America currently has a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 8.29. This valuation marks a premium compared to its industry's average Forward P/E of 7.51.
Investors should also note that BAC has a PEG ratio of 1.18 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BAC's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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