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Bank of America (BAC) Increases Yet Falls Behind Market: What Investors Need to Know
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Bank of America (BAC - Free Report) closed at $27.02 in the latest trading session, marking a +0.04% move from the prior day. The stock lagged the S&P 500's daily gain of 0.43%. On the other hand, the Dow registered a gain of 0.19%, and the technology-centric Nasdaq increased by 0.71%.
Shares of the nation's second-largest bank have depreciated by 6.77% over the course of the past month, underperforming the Finance sector's loss of 2.32% and the S&P 500's loss of 2.1%.
Investors will be eagerly watching for the performance of Bank of America in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 17, 2023. It is anticipated that the company will report an EPS of $0.81, marking stability compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $25.13 billion, showing a 2.55% escalation compared to the year-ago quarter.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $100.73 billion. These results would represent year-over-year changes of +6.27% and +6.09%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Bank of America. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.33% fall in the Zacks Consensus EPS estimate. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Bank of America is presently being traded at a Forward P/E ratio of 7.96. This denotes no noticeable deviation relative to the industry's average Forward P/E of 7.96.
Also, we should mention that BAC has a PEG ratio of 1.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Banks - Major Regional industry stood at 1.26 at the close of the market yesterday.
The Banks - Major Regional industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 33% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Bank of America (BAC) Increases Yet Falls Behind Market: What Investors Need to Know
Bank of America (BAC - Free Report) closed at $27.02 in the latest trading session, marking a +0.04% move from the prior day. The stock lagged the S&P 500's daily gain of 0.43%. On the other hand, the Dow registered a gain of 0.19%, and the technology-centric Nasdaq increased by 0.71%.
Shares of the nation's second-largest bank have depreciated by 6.77% over the course of the past month, underperforming the Finance sector's loss of 2.32% and the S&P 500's loss of 2.1%.
Investors will be eagerly watching for the performance of Bank of America in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 17, 2023. It is anticipated that the company will report an EPS of $0.81, marking stability compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $25.13 billion, showing a 2.55% escalation compared to the year-ago quarter.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $100.73 billion. These results would represent year-over-year changes of +6.27% and +6.09%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Bank of America. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.33% fall in the Zacks Consensus EPS estimate. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Bank of America is presently being traded at a Forward P/E ratio of 7.96. This denotes no noticeable deviation relative to the industry's average Forward P/E of 7.96.
Also, we should mention that BAC has a PEG ratio of 1.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Banks - Major Regional industry stood at 1.26 at the close of the market yesterday.
The Banks - Major Regional industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 33% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.