We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Bank of America (BAC - Free Report) closed the most recent trading day at $29.02, moving +1.26% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Prior to today's trading, shares of the nation's second-largest bank had lost 1.61% over the past month. This has lagged the Finance sector's gain of 1.25% and the S&P 500's gain of 2.65% 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. The company is expected to report EPS of $0.85, up 16.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.02 billion, up 10.26% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $100.76 billion. These totals would mark changes of +6.9% and +6.12%, 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 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Bank of America is holding a Forward P/E ratio of 8.4. Its industry sports an average Forward P/E of 8.11, so we one might conclude that Bank of America is trading at a premium comparatively.
Also, we should mention that BAC has a PEG ratio of 1.2. 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. BAC's industry had an average PEG ratio of 1.33 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 15% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
Bank of America (BAC - Free Report) closed the most recent trading day at $29.02, moving +1.26% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Prior to today's trading, shares of the nation's second-largest bank had lost 1.61% over the past month. This has lagged the Finance sector's gain of 1.25% and the S&P 500's gain of 2.65% 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. The company is expected to report EPS of $0.85, up 16.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.02 billion, up 10.26% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $100.76 billion. These totals would mark changes of +6.9% and +6.12%, 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 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Bank of America is holding a Forward P/E ratio of 8.4. Its industry sports an average Forward P/E of 8.11, so we one might conclude that Bank of America is trading at a premium comparatively.
Also, we should mention that BAC has a PEG ratio of 1.2. 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. BAC's industry had an average PEG ratio of 1.33 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 216, which puts it in the bottom 15% 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.