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Bank of America (BAC) Dips More Than Broader Markets: What You Should Know

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Bank of America (BAC - Free Report) closed at $30.57 in the latest trading session, marking a -1.48% move from the prior day. This change lagged the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq gained 0.01%.

Heading into today, shares of the nation's second-largest bank had lost 8.47% over the past month, outpacing the Finance sector's loss of 9.32% and the S&P 500's loss of 9.7% 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 October 17, 2022. On that day, Bank of America is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 5.88%. Meanwhile, our latest consensus estimate is calling for revenue of $23.58 billion, up 3.59% from the prior-year quarter.

BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.20 per share and revenue of $93.59 billion. These results would represent year-over-year changes of -10.36% and +5.03%, respectively.

Investors should also note any recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.31% lower within the past month. Bank of America currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Bank of America currently has a Forward P/E ratio of 9.7. This represents a premium compared to its industry's average Forward P/E of 9.36.

Also, we should mention that BAC has a PEG ratio of 1.39. 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 was holding an average PEG ratio of 1.16 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.


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