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Bank of America (BAC) Stock Slides as Market Rises: Facts to Know Before You Trade

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Bank of America (BAC - Free Report) closed the latest trading day at $33.70, indicating a -0.77% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 0.32%.

The nation's second-largest bank's shares have seen an increase of 3.63% over the last month, aligning with the Finance sector and outstripping the S&P 500's gain of 2.99%.

Analysts and investors alike will be keeping a close eye on the performance of Bank of America in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.77, reflecting a 18.09% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $25.24 billion, down 3.89% from the prior-year quarter.

BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.14 per share and revenue of $99.75 billion. These results would represent year-over-year changes of -8.19% and +1.19%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% downward. Bank of America presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Bank of America is holding a Forward P/E ratio of 10.82. For comparison, its industry has an average Forward P/E of 10.5, which means Bank of America is trading at a premium to the group.

We can additionally observe that BAC currently boasts a PEG ratio of 1.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Banks - Major Regional was holding an average PEG ratio of 1.51 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 38, this industry ranks in the top 16% of all industries, numbering over 250.

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.

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

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