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Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Bank of America (BAC - Free Report) closed at $43.16, marking a -1.64% move from the previous day. This change lagged the S&P 500's daily loss of 1.14%. Elsewhere, the Dow lost 1.23%, while the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the nation's second-largest bank had lost 3.35% over the past month. This has lagged the Finance sector's loss of 2.94% and the S&P 500's loss of 1.37% 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 19, 2022. On that day, Bank of America is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 32.2%. Meanwhile, our latest consensus estimate is calling for revenue of $21.99 billion, up 9.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $89.2 billion, which would represent changes of +86.63% and +4.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Bank of America. 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.
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.
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 remained stagnant. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Bank of America has a Forward P/E ratio of 12.56 right now. For comparison, its industry has an average Forward P/E of 10.73, which means Bank of America is trading at a premium to the group.
Investors should also note that BAC has a PEG ratio of 1.79 right now. 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 1.28 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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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Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Bank of America (BAC - Free Report) closed at $43.16, marking a -1.64% move from the previous day. This change lagged the S&P 500's daily loss of 1.14%. Elsewhere, the Dow lost 1.23%, while the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the nation's second-largest bank had lost 3.35% over the past month. This has lagged the Finance sector's loss of 2.94% and the S&P 500's loss of 1.37% 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 19, 2022. On that day, Bank of America is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 32.2%. Meanwhile, our latest consensus estimate is calling for revenue of $21.99 billion, up 9.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $89.2 billion, which would represent changes of +86.63% and +4.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Bank of America. 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.
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.
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 remained stagnant. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Bank of America has a Forward P/E ratio of 12.56 right now. For comparison, its industry has an average Forward P/E of 10.73, which means Bank of America is trading at a premium to the group.
Investors should also note that BAC has a PEG ratio of 1.79 right now. 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 1.28 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.