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Bank of America (BAC) Stock Sinks As Market Gains: Here's Why

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Bank of America (BAC - Free Report) closed the most recent trading day at $51.59, moving -1.58% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%.

Prior to today's trading, shares of the nation's second-largest bank had gained 3.31% outpaced the Finance sector's gain of 1.64% and the S&P 500's gain of 3.15%.

The upcoming earnings release of Bank of America will be of great interest to investors. The company's earnings report is expected on October 15, 2025. On that day, Bank of America is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 16.05%. Our most recent consensus estimate is calling for quarterly revenue of $27.07 billion, up 6.81% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.69 per share and revenue of $108.1 billion, indicating changes of +12.5% and +6.09%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 witnessed a 0.12% increase. Right now, Bank of America possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 14.22. This indicates a discount in contrast to its industry's Forward P/E of 17.23.

We can additionally observe that BAC currently boasts a PEG ratio of 2.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 28, positioning it in the top 12% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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