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Bank of America (BAC) Advances But Underperforms Market: Key Facts

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The latest trading session saw Bank of America (BAC - Free Report) ending at $30.01, denoting a +0.1% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 1.13%.

Investors will be eagerly watching for the performance of Bank of America in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.73, reflecting a 14.12% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $24.09 billion, indicating a 1.81% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.46 per share and a revenue of $100.75 billion, representing changes of +8.46% and +6.11%, respectively, from the prior year.

Any recent changes to analyst estimates for Bank of America should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. Right now, Bank of America possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Bank of America is currently exchanging hands at a Forward P/E ratio of 8.66. Its industry sports an average Forward P/E of 8.72, so one might conclude that Bank of America is trading at a discount comparatively.

We can additionally observe that BAC currently boasts a PEG ratio of 1.24. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.39 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 87, which puts it in the top 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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