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Bank of America (BAC) Increases Despite Market Slip: Here's What You Need to Know
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Bank of America (BAC - Free Report) closed the latest trading day at $35.39, indicating a +0.68% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 1.02%. Meanwhile, the Dow lost 1.04%, and the Nasdaq, a tech-heavy index, lost 1.65%.
The nation's second-largest bank's shares have seen an increase of 6.55% over the last month, surpassing the Finance sector's gain of 3.9% and the S&P 500's gain of 3.64%.
Market participants will be closely following the financial results of Bank of America in its upcoming release. The company plans to announce its earnings on April 16, 2024. In that report, analysts expect Bank of America to post earnings of $0.77 per share. This would mark a year-over-year decline of 18.09%. Meanwhile, our latest consensus estimate is calling for revenue of $25.22 billion, down 3.94% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.14 per share and a revenue of $99.7 billion, indicating changes of -8.19% and +1.14%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. As of now, Bank of America holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Bank of America is currently exchanging hands at a Forward P/E ratio of 11.21. This expresses a premium compared to the average Forward P/E of 10.85 of its industry.
We can also see that BAC currently has a PEG ratio of 1.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 1.54 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 27, placing it within the top 11% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Bank of America (BAC) Increases Despite Market Slip: Here's What You Need to Know
Bank of America (BAC - Free Report) closed the latest trading day at $35.39, indicating a +0.68% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 1.02%. Meanwhile, the Dow lost 1.04%, and the Nasdaq, a tech-heavy index, lost 1.65%.
The nation's second-largest bank's shares have seen an increase of 6.55% over the last month, surpassing the Finance sector's gain of 3.9% and the S&P 500's gain of 3.64%.
Market participants will be closely following the financial results of Bank of America in its upcoming release. The company plans to announce its earnings on April 16, 2024. In that report, analysts expect Bank of America to post earnings of $0.77 per share. This would mark a year-over-year decline of 18.09%. Meanwhile, our latest consensus estimate is calling for revenue of $25.22 billion, down 3.94% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.14 per share and a revenue of $99.7 billion, indicating changes of -8.19% and +1.14%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. As of now, Bank of America holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Bank of America is currently exchanging hands at a Forward P/E ratio of 11.21. This expresses a premium compared to the average Forward P/E of 10.85 of its industry.
We can also see that BAC currently has a PEG ratio of 1.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 1.54 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 27, placing it within the top 11% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.