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Bank of America (BAC) Stock Sinks As Market Gains: What You Should Know

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The most recent trading session ended with Bank of America (BAC - Free Report) standing at $39.93, reflecting a -0.08% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.45%.

Shares of the nation's second-largest bank witnessed a gain of 1.24% over the previous month, beating the performance of the Finance sector with its loss of 4.16% and underperforming the S&P 500's gain of 5.41%.

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 report is set to go public on October 15, 2024. In that report, analysts expect Bank of America to post earnings of $0.78 per share. This would mark a year-over-year decline of 13.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $25.33 billion, indicating a 0.65% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.25 per share and a revenue of $101.77 billion, representing changes of -4.97% and +3.24%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Bank of America. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.67% fall in the Zacks Consensus EPS estimate. At present, Bank of America boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Bank of America currently has a Forward P/E ratio of 12.28. This represents no noticeable deviation compared to its industry's average Forward P/E of 12.28.

It is also worth noting that BAC currently has a PEG ratio of 1.38. 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 industry had an average PEG ratio of 1.54 as trading concluded yesterday.

The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 38% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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