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Bank of America (BAC) Stock Declines While Market Improves: Some Information for Investors

Bank of America (BAC) ended the recent trading session at $39.32, demonstrating a -0.96% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, added 0.59%.

The nation's second-largest bank's shares have seen an increase of 5.73% over the last month, surpassing the Finance sector's gain of 2.95% and the S&P 500's gain of 4.19%.

The upcoming earnings release of Bank of America will be of great interest to investors. The company is expected to report EPS of $0.81, down 7.95% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $25.26 billion, indicating a 0.24% upward movement from the same quarter last year.

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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Investors should also take note of any recent adjustments to analyst estimates for Bank of America. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.62% higher. At present, Bank of America boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Bank of America is at present trading with a Forward P/E ratio of 12.31. Its industry sports an average Forward P/E of 11.39, so one might conclude that Bank of America is trading at a premium comparatively.

Also, we should mention that BAC has 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. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.76.

The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.

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.

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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Zacks Investment Research