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Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Bank of America (BAC - Free Report) closed at $29.41, marking a +0.96% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.03%.
Heading into today, shares of the nation's second-largest bank had gained 0.14% over the past month, lagging the Finance sector's gain of 2.83% and the S&P 500's gain of 4.28% in that time.
Investors will be hoping for strength from BAC as it approaches its next earnings release. In that report, analysts expect BAC to post earnings of $0.66 per share. This would mark year-over-year growth of 6.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.50 billion, up 1.6% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.85 per share and revenue of $94.15 billion, which would represent changes of +9.2% and +3.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BAC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.28% higher. BAC is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, BAC is holding a Forward P/E ratio of 10.23. This valuation marks a discount compared to its industry's average Forward P/E of 10.85.
We can also see that BAC currently has a PEG ratio of 1.28. 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 industry currently had an average PEG ratio of 1.29 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Bank of America (BAC - Free Report) closed at $29.41, marking a +0.96% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.18%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.03%.
Heading into today, shares of the nation's second-largest bank had gained 0.14% over the past month, lagging the Finance sector's gain of 2.83% and the S&P 500's gain of 4.28% in that time.
Investors will be hoping for strength from BAC as it approaches its next earnings release. In that report, analysts expect BAC to post earnings of $0.66 per share. This would mark year-over-year growth of 6.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.50 billion, up 1.6% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.85 per share and revenue of $94.15 billion, which would represent changes of +9.2% and +3.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BAC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.28% higher. BAC is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, BAC is holding a Forward P/E ratio of 10.23. This valuation marks a discount compared to its industry's average Forward P/E of 10.85.
We can also see that BAC currently has a PEG ratio of 1.28. 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 industry currently had an average PEG ratio of 1.29 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.