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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 at $34.30 in the latest trading session, marking a +0.26% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.84%.
Coming into today, shares of the nation's second-largest bank had lost 3.09% in the past month. In that same time, the Finance sector lost 2.03%, while the S&P 500 lost 2%.
Bank of America will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.82, up 2.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.37 billion, up 9.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.38 per share and revenue of $100.97 billion. These totals would mark changes of +5.96% and +6.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.44% lower. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Bank of America has a Forward P/E ratio of 10.11 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.72.
Meanwhile, BAC's PEG ratio is currently 1.44. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 44% 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Bank of America (BAC) Gains As Market Dips: What You Should Know
Bank of America (BAC - Free Report) closed at $34.30 in the latest trading session, marking a +0.26% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.84%.
Coming into today, shares of the nation's second-largest bank had lost 3.09% in the past month. In that same time, the Finance sector lost 2.03%, while the S&P 500 lost 2%.
Bank of America will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.82, up 2.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.37 billion, up 9.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.38 per share and revenue of $100.97 billion. These totals would mark changes of +5.96% and +6.34%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.44% lower. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Bank of America has a Forward P/E ratio of 10.11 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.72.
Meanwhile, BAC's PEG ratio is currently 1.44. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 44% 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.