In the latest trading session, Bank of America (BAC) closed at $28.59, marking a -0.03% move from the previous day. This change lagged the S&P 500's 0.37% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Heading into today, shares of the nation's second-largest bank had lost 16.28% over the past month, lagging the Finance sector's loss of 5.19% and the S&P 500's gain of 3.71% in that time.
Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. This is expected to be April 18, 2023. On that day, Bank of America is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.27 billion, up 8.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $100.64 billion. These totals would mark changes of +5.02% and +6%, respectively, from last year.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.84% lower. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Bank of America currently has a Forward P/E ratio of 8.53. This valuation marks a premium compared to its industry's average Forward P/E of 7.85.
Meanwhile, BAC's PEG ratio is currently 1.22. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.
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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