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

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Bank of America (BAC - Free Report) closed the most recent trading day at $37.20, moving +0.49% from the previous trading session. This change outpaced the S&P 500's 0.63% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.15%.

Coming into today, shares of the nation's second-largest bank had gained 2.43% in the past month. In that same time, the Finance sector gained 2.05%, while the S&P 500 gained 0.89%.

Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. On that day, Bank of America is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 21.36%. Our most recent consensus estimate is calling for quarterly revenue of $23.17 billion, up 7.94% from the year-ago period.

BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $94.42 billion. These results would represent year-over-year changes of -6.44% and +5.96%, respectively.

It is also important to note the recent changes to analyst estimates for Bank of America. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. Bank of America is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Bank of America currently has a Forward P/E ratio of 11.1. This represents a no noticeable deviation compared to its industry's average Forward P/E of 11.1.

Investors should also note that BAC has a PEG ratio of 1.59 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 1.59 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 104, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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