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

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In the latest close session, Bank of America (BAC - Free Report) was down 1.76% at $50.68. The stock's change was less than the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.

The stock of nation's second-largest bank has risen by 2.32% in the past month, leading the Finance sector's gain of 1.52% and undershooting the S&P 500's gain of 3.54%.

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 October 15, 2025. The company's earnings per share (EPS) are projected to be $0.93, reflecting a 14.81% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $27.07 billion, indicating a 6.81% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.68 per share and revenue of $108.1 billion. These totals would mark changes of +12.2% and +6.09%, respectively, from last year.

Any recent changes to analyst estimates for Bank of America should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Currently, Bank of America is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Bank of America is currently being traded at a Forward P/E ratio of 14.01. For comparison, its industry has an average Forward P/E of 17.08, which means Bank of America is trading at a discount to the group.

We can also see that BAC currently has a PEG ratio of 2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Investment Bank was holding an average PEG ratio of 1.65 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 29, which puts 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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