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Bank of America (BAC) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Bank of America (BAC - Free Report) closed at $42.88, marking a -0.56% move from the previous day. This change lagged the S&P 500's 0.02% gain on the day.

Heading into today, shares of the nation's second-largest bank had gained 2.54% over the past month, outpacing the Finance sector's gain of 2.14% and the S&P 500's gain of 0.04% in that time.

BAC will be looking to display strength as it nears its next earnings release. In that report, analysts expect BAC to post earnings of $0.75 per share. This would mark year-over-year growth of 102.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.92 billion, down 1.82% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.11 per share and revenue of $88.19 billion. These totals would mark changes of +66.31% and +3.11%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for BAC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.21% lower. BAC is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, BAC currently has a Forward P/E ratio of 13.86. This represents a premium compared to its industry's average Forward P/E of 12.41.

Meanwhile, BAC's PEG ratio is currently 1.98. 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. BAC's industry had an average PEG ratio of 1.47 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 124, which puts it in the top 49% 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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