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Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
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Bank of America (BAC - Free Report) closed at $51.69 in the latest trading session, marking a +2.54% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 1.26%.
Heading into today, shares of the nation's second-largest bank had lost 3.37% over the past month, lagging the Finance sector's loss of 0.97% and the S&P 500's loss of 0.25%.
Market participants will be closely following the financial results of Bank of America in its upcoming release. The company is forecasted to report an EPS of $0.98, showcasing a 8.89% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $29.22 billion, showing a 6.76% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.3 per share and a revenue of $118.12 billion, demonstrating changes of +12.86% and +7.11%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Bank of America. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. As of now, Bank of America holds a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 11.71. For comparison, its industry has an average Forward P/E of 13.38, which means Bank of America is trading at a discount to the group.
It's also important to note that BAC currently trades at a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.11.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
Bank of America (BAC - Free Report) closed at $51.69 in the latest trading session, marking a +2.54% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 1.26%.
Heading into today, shares of the nation's second-largest bank had lost 3.37% over the past month, lagging the Finance sector's loss of 0.97% and the S&P 500's loss of 0.25%.
Market participants will be closely following the financial results of Bank of America in its upcoming release. The company is forecasted to report an EPS of $0.98, showcasing a 8.89% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $29.22 billion, showing a 6.76% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.3 per share and a revenue of $118.12 billion, demonstrating changes of +12.86% and +7.11%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Bank of America. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. As of now, Bank of America holds a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 11.71. For comparison, its industry has an average Forward P/E of 13.38, which means Bank of America is trading at a discount to the group.
It's also important to note that BAC currently trades at a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.11.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.