Bank of America (BAC) closed at $46.72 in the latest trading session, marking a -0.06% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.39% for the day. On the other hand, the Dow registered a loss of 0.13%, and the technology-centric Nasdaq increased by 0.6%.
Heading into today, shares of the nation's second-largest bank had gained 10.47% over the past month, outpacing the Finance sector's gain of 3.06% and the S&P 500's gain of 1.06% in that time.
The investment community will be closely monitoring the performance of Bank of America in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.80, reflecting a 14.29% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $25.25 billion, up 15.01% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.27 per share and a revenue of $101.83 billion, indicating changes of -4.39% and +3.3%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.22% upward. Bank of America is currently a Zacks Rank #3 (Hold).
In the context of valuation, Bank of America is at present trading with a Forward P/E ratio of 14.3. For comparison, its industry has an average Forward P/E of 17.01, which means Bank of America is trading at a discount to the group.
Investors should also note that BAC has a PEG ratio of 1.58 right now. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.48 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
