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Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
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Bank of America (BAC - Free Report) closed the most recent trading day at $27.74, moving +0.65% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the nation's second-largest bank had gained 3.57% over the past month. This has outpaced the Finance sector's gain of 3.34% and the S&P 500's gain of 0.89% in that time.
Wall Street will be looking for positivity from BAC as it approaches its next earnings report date. This is expected to be January 16, 2019. On that day, BAC is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 36.17%. Our most recent consensus estimate is calling for quarterly revenue of $22.39 billion, up 9.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.55 per share and revenue of $91.18 billion. These totals would mark changes of +39.34% and +4.38%, respectively, from last year.
Any recent changes to analyst estimates for BAC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BAC is currently a Zacks Rank #3 (Hold).
Investors should also note BAC's current valuation metrics, including its Forward P/E ratio of 10.81. Its industry sports an average Forward P/E of 11.47, so we one might conclude that BAC is trading at a discount comparatively.
Also, we should mention that BAC has a PEG ratio of 1.35. 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 1.17 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 37% 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.
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Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
Bank of America (BAC - Free Report) closed the most recent trading day at $27.74, moving +0.65% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the nation's second-largest bank had gained 3.57% over the past month. This has outpaced the Finance sector's gain of 3.34% and the S&P 500's gain of 0.89% in that time.
Wall Street will be looking for positivity from BAC as it approaches its next earnings report date. This is expected to be January 16, 2019. On that day, BAC is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 36.17%. Our most recent consensus estimate is calling for quarterly revenue of $22.39 billion, up 9.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.55 per share and revenue of $91.18 billion. These totals would mark changes of +39.34% and +4.38%, respectively, from last year.
Any recent changes to analyst estimates for BAC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BAC is currently a Zacks Rank #3 (Hold).
Investors should also note BAC's current valuation metrics, including its Forward P/E ratio of 10.81. Its industry sports an average Forward P/E of 11.47, so we one might conclude that BAC is trading at a discount comparatively.
Also, we should mention that BAC has a PEG ratio of 1.35. 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 1.17 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 37% 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.