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Bank of America (BAC) Ascends While Market Falls: Some Facts to Note

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Bank of America (BAC - Free Report) ended the recent trading session at $33.90, demonstrating a +0.68% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.57% for the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.

The nation's second-largest bank's stock has climbed by 9.25% in the past month, exceeding the Finance sector's gain of 5.35% and the S&P 500's gain of 4%.

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 January 12, 2024. On that day, Bank of America is projected to report earnings of $0.68 per share, which would represent a year-over-year decline of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $24.03 billion, down 2.05% from the prior-year quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for Bank of America. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.06% lower. Bank of America is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Bank of America is holding a Forward P/E ratio of 10.41. This denotes a discount relative to the industry's average Forward P/E of 10.79.

We can additionally observe that BAC currently boasts a PEG ratio of 1.49. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.61.

The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 40% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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