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Bank of America (BAC) Dips More Than Broader Market: What You Should Know

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Bank of America (BAC - Free Report) ended the recent trading session at $29.56, demonstrating a -0.57% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.07%.

Heading into today, shares of the nation's second-largest bank had gained 18.12% over the past month, outpacing the Finance sector's gain of 9.07% and the S&P 500's gain of 7.49% in that time.

The upcoming earnings release of Bank of America will be of great interest to investors. The company is expected to report EPS of $0.71, down 16.47% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $24.11 billion, indicating a 1.71% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.43 per share and a revenue of $100.78 billion, signifying shifts of +7.52% and +6.14%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Bank of America. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.25% increase. Bank of America presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Bank of America is at present trading with a Forward P/E ratio of 8.66. This expresses no noticeable deviation compared to the average Forward P/E of 8.66 of its industry.

Meanwhile, BAC's PEG ratio is currently 1.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. BAC's industry had an average PEG ratio of 1.35 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% 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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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