In the latest trading session, Bank of America (BAC) closed at $47.50, marking a +1.06% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.99%, while the tech-heavy Nasdaq added 0.27%.
The nation's second-largest bank's stock has climbed by 12.2% in the past month, exceeding the Finance sector's gain of 4.87% and the S&P 500's gain of 2.1%.
The upcoming earnings release of Bank of America will be of great interest to investors. In that report, analysts expect Bank of America to post earnings of $0.80 per share. This would mark year-over-year growth of 14.29%. Alongside, our most recent consensus estimate is anticipating revenue of $25.25 billion, indicating a 15.01% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.27 per share and revenue of $101.83 billion. These totals would mark changes of -4.39% and +3.3%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Bank of America. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.22% higher within the past month. Bank of America is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Bank of America is currently exchanging hands at a Forward P/E ratio of 14.38. This valuation marks a discount compared to its industry's average Forward P/E of 17.15.
We can additionally observe that BAC currently boasts a PEG ratio of 1.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.55.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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