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Bank of America (BAC) Dips More Than Broader Markets: What You Should Know

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Bank of America (BAC - Free Report) closed at $43 in the latest trading session, marking a -1.01% move from the prior day. This move lagged the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Coming into today, shares of the nation's second-largest bank had gained 2.28% in the past month. In that same time, the Finance sector gained 4.01%, while the S&P 500 gained 6.02%.

Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. This is expected to be April 18, 2022. In that report, analysts expect Bank of America to post earnings of $0.78 per share. This would mark a year-over-year decline of 9.3%. Our most recent consensus estimate is calling for quarterly revenue of $23.41 billion, up 2.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.27 per share and revenue of $94.02 billion, which would represent changes of -8.4% and +5.51%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Bank of America. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. 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 13.27 right now. Its industry sports an average Forward P/E of 12.97, so we one might conclude that Bank of America is trading at a premium comparatively.

Meanwhile, BAC's PEG ratio is currently 1.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 1.6 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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