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Bank of America (BAC) Stock Sinks As Market Gains: What You Should Know
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Bank of America (BAC - Free Report) closed at $29.13 in the latest trading session, marking a -0.48% move from the prior day. This change lagged the S&P 500's 0.93% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.71%.
Heading into today, shares of the nation's second-largest bank had gained 8.05% over the past month, outpacing the Finance sector's gain of 3.55% and the S&P 500's gain of 4.61% in that time.
Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. This is expected to be July 18, 2023. On that day, Bank of America is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 17.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.21 billion, up 11.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.42 per share and revenue of $100.9 billion, which would represent changes of +7.21% and +6.27%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 0.02% lower within the past month. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 8.56. For comparison, its industry has an average Forward P/E of 7.97, which means Bank of America is trading at a premium to the group.
It is also worth noting that BAC currently has a PEG ratio of 1.22. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Bank of America (BAC) Stock Sinks As Market Gains: What You Should Know
Bank of America (BAC - Free Report) closed at $29.13 in the latest trading session, marking a -0.48% move from the prior day. This change lagged the S&P 500's 0.93% gain on the day. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 1.71%.
Heading into today, shares of the nation's second-largest bank had gained 8.05% over the past month, outpacing the Finance sector's gain of 3.55% and the S&P 500's gain of 4.61% in that time.
Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. This is expected to be July 18, 2023. On that day, Bank of America is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 17.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.21 billion, up 11.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.42 per share and revenue of $100.9 billion, which would represent changes of +7.21% and +6.27%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 0.02% lower within the past month. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 8.56. For comparison, its industry has an average Forward P/E of 7.97, which means Bank of America is trading at a premium to the group.
It is also worth noting that BAC currently has a PEG ratio of 1.22. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.