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Bank of America (BAC) Declines More Than Market: Some Information for Investors

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Bank of America (BAC - Free Report) closed the latest trading day at $35.79, indicating a -1.54% change from the previous session's end. This change lagged the S&P 500's 1.46% loss on the day. At the same time, the Dow lost 1.24%, and the tech-heavy Nasdaq lost 1.63%.

The nation's second-largest bank's stock has climbed by 1.85% in the past month, exceeding the Finance sector's loss of 3.74% and the S&P 500's gain of 1.6%.

The investment community will be closely monitoring the performance of Bank of America in its forthcoming earnings report. The company is scheduled to release 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%. Our most recent consensus estimate is calling for quarterly revenue of $25.28 billion, down 3.73% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.13 per share and a revenue of $99.89 billion, representing changes of -8.48% and +1.33%, respectively, from the prior year.

Investors should also pay attention to any latest changes in 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. As of now, Bank of America holds a Zacks Rank of #3 (Hold).

Looking at valuation, Bank of America is presently trading at a Forward P/E ratio of 11.61. This valuation marks a premium compared to its industry's average Forward P/E of 10.92.

Also, we should mention that BAC has a PEG ratio of 1.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Banks - Major Regional industry held an average PEG ratio of 1.52.

The Banks - Major Regional industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 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 use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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