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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 $41.39, moving +0.95% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.07%.

The company is expected to report EPS of $0.76, up 105.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.92 billion, down 1.82% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.04 per share and revenue of $87.73 billion, which would represent changes of +62.57% and +2.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for BAC. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 16.86% higher. BAC is currently a Zacks Rank #3 (Hold).

Digging into valuation, BAC currently has a Forward P/E ratio of 13.48. For comparison, its industry has an average Forward P/E of 12.37, which means BAC is trading at a premium to the group.

Investors should also note that BAC has a PEG ratio of 1.93 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Major Regional industry currently had an average PEG ratio of 1.5 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 29, which puts it in the top 12% 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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