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Bank of America (BAC) Gains But Lags Market: What You Should Know
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Bank of America (BAC - Free Report) closed the most recent trading day at $28.45, moving +0.04% from the previous trading session. This move lagged the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.59%.
Coming into today, shares of the nation's second-largest bank had lost 11.54% in the past month. In that same time, the Finance sector lost 4.44%, while the S&P 500 lost 3.13%.
Investors will be hoping for strength from Bank of America as it approaches its next earnings release. The company is expected to report EPS of $0.81, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.05 billion, up 2.25% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $100.76 billion, which would represent changes of +6.9% and +6.12%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Bank of America. These recent revisions tend to reflect the evolving nature of short-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. 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 0.07% higher within the past month. Bank of America currently has 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 8.35 right now. For comparison, its industry has an average Forward P/E of 8.53, which means Bank of America is trading at a discount to the group.
Also, we should mention that BAC has a PEG ratio of 1.19. 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 1.45 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Bank of America (BAC) Gains But Lags Market: What You Should Know
Bank of America (BAC - Free Report) closed the most recent trading day at $28.45, moving +0.04% from the previous trading session. This move lagged the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.59%.
Coming into today, shares of the nation's second-largest bank had lost 11.54% in the past month. In that same time, the Finance sector lost 4.44%, while the S&P 500 lost 3.13%.
Investors will be hoping for strength from Bank of America as it approaches its next earnings release. The company is expected to report EPS of $0.81, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.05 billion, up 2.25% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $100.76 billion, which would represent changes of +6.9% and +6.12%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Bank of America. These recent revisions tend to reflect the evolving nature of short-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. 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 0.07% higher within the past month. Bank of America currently has 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 8.35 right now. For comparison, its industry has an average Forward P/E of 8.53, which means Bank of America is trading at a discount to the group.
Also, we should mention that BAC has a PEG ratio of 1.19. 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 1.45 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.