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

Bank of America (BAC) closed the most recent trading day at $31.24, moving -1.01% from the previous trading session. This move lagged the S&P 500's daily gain of 0.16%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.49%.

Coming into today, shares of the nation's second-largest bank had lost 12.7% in the past month. In that same time, the Finance sector lost 7.94%, while the S&P 500 lost 6.79%.

Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be July 18, 2022. On that day, Bank of America is projected to report earnings of $0.79 per share, which would represent a year-over-year decline of 23.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.11 billion, up 7.65% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.33 per share and revenue of $94.24 billion. These totals would mark changes of -6.72% and +5.76%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Bank of America. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.38% lower within the past month. Bank of America is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Bank of America is holding a Forward P/E ratio of 9.46. This represents a discount compared to its industry's average Forward P/E of 9.75.

Also, we should mention that BAC has a PEG ratio of 1.35. 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 currently had an average PEG ratio of 1.35 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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