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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 $28.87 in the latest trading session, marking a -1.1% move from the prior day. This change lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 5.08%.
Prior to today's trading, shares of the nation's second-largest bank had gained 3% over the past month. This has lagged the Finance sector's gain of 4.09% and the S&P 500's gain of 5.36% in that time.
Bank of America will be looking to display strength as it nears its next earnings release, which 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.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $100.9 billion. These results would represent year-over-year changes of +7.21% and +6.27%, respectively.
Any recent changes to analyst estimates for Bank of America should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 0.06% lower within the past month. 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 8.54 right now. For comparison, its industry has an average Forward P/E of 8.3, which means Bank of America is trading at a premium to the group.
We can also see 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 1.22 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 210, which puts it in the bottom 17% 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.
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
Bank of America (BAC - Free Report) closed at $28.87 in the latest trading session, marking a -1.1% move from the prior day. This change lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 5.08%.
Prior to today's trading, shares of the nation's second-largest bank had gained 3% over the past month. This has lagged the Finance sector's gain of 4.09% and the S&P 500's gain of 5.36% in that time.
Bank of America will be looking to display strength as it nears its next earnings release, which 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.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $100.9 billion. These results would represent year-over-year changes of +7.21% and +6.27%, respectively.
Any recent changes to analyst estimates for Bank of America should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 0.06% lower within the past month. 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 8.54 right now. For comparison, its industry has an average Forward P/E of 8.3, which means Bank of America is trading at a premium to the group.
We can also see 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 1.22 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 210, which puts it in the bottom 17% 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.