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Bank of America (BAC) Gains As Market Dips: What You Should Know
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Bank of America (BAC - Free Report) closed at $33.51 in the latest trading session, marking a +1.18% move from the prior day. This change outpaced the S&P 500's 0.4% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%.
Prior to today's trading, shares of the nation's second-largest bank had lost 3.92% over the past month. This has lagged the Finance sector's loss of 3.82% and was narrower than the S&P 500's loss of 5.57% in that time.
Investors will be hoping for strength from Bank of America as it approaches its next earnings release, which is expected to be January 13, 2023. In that report, analysts expect Bank of America to post earnings of $0.83 per share. This would mark year-over-year growth of 1.22%. Our most recent consensus estimate is calling for quarterly revenue of $24.36 billion, up 10.4% from the year-ago period.
It is also important to note the 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.6% lower. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 10.45. This valuation marks a premium compared to its industry's average Forward P/E of 10.09.
It is also worth noting that BAC currently has a PEG ratio of 1.49. 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. The Banks - Major Regional was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Bank of America (BAC) Gains As Market Dips: What You Should Know
Bank of America (BAC - Free Report) closed at $33.51 in the latest trading session, marking a +1.18% move from the prior day. This change outpaced the S&P 500's 0.4% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%.
Prior to today's trading, shares of the nation's second-largest bank had lost 3.92% over the past month. This has lagged the Finance sector's loss of 3.82% and was narrower than the S&P 500's loss of 5.57% in that time.
Investors will be hoping for strength from Bank of America as it approaches its next earnings release, which is expected to be January 13, 2023. In that report, analysts expect Bank of America to post earnings of $0.83 per share. This would mark year-over-year growth of 1.22%. Our most recent consensus estimate is calling for quarterly revenue of $24.36 billion, up 10.4% from the year-ago period.
It is also important to note the 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.6% lower. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 10.45. This valuation marks a premium compared to its industry's average Forward P/E of 10.09.
It is also worth noting that BAC currently has a PEG ratio of 1.49. 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. The Banks - Major Regional was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.