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Bank of America (BAC) Gains But Lags Market: What You Should Know
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In the latest trading session, Bank of America (BAC - Free Report) closed at $31.19, marking a +0.61% move from the previous day. This move lagged the S&P 500's daily gain of 0.78%. At the same time, the Dow added 0.95%, and the tech-heavy Nasdaq gained 0.98%.
Coming into today, shares of the nation's second-largest bank had gained 0.06% in the past month. In that same time, the Finance sector gained 0.7%, while the S&P 500 gained 2.17%.
BAC will be looking to display strength as it nears its next earnings release, which is expected to be October 15, 2018. On that day, BAC is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 31.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.66 billion, up 3.74% from the year-ago period.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $2.52 per share and revenue of $91.55 billion. These results would represent year-over-year changes of +37.7% and +4.81%, respectively.
Any recent changes to analyst estimates for BAC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. BAC is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, BAC is currently trading at a Forward P/E ratio of 12.3. Its industry sports an average Forward P/E of 12.72, so we one might conclude that BAC is trading at a discount comparatively.
It is also worth noting that BAC currently has a PEG ratio of 1.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.
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Bank of America (BAC) Gains But Lags Market: What You Should Know
In the latest trading session, Bank of America (BAC - Free Report) closed at $31.19, marking a +0.61% move from the previous day. This move lagged the S&P 500's daily gain of 0.78%. At the same time, the Dow added 0.95%, and the tech-heavy Nasdaq gained 0.98%.
Coming into today, shares of the nation's second-largest bank had gained 0.06% in the past month. In that same time, the Finance sector gained 0.7%, while the S&P 500 gained 2.17%.
BAC will be looking to display strength as it nears its next earnings release, which is expected to be October 15, 2018. On that day, BAC is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 31.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.66 billion, up 3.74% from the year-ago period.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $2.52 per share and revenue of $91.55 billion. These results would represent year-over-year changes of +37.7% and +4.81%, respectively.
Any recent changes to analyst estimates for BAC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. BAC is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, BAC is currently trading at a Forward P/E ratio of 12.3. Its industry sports an average Forward P/E of 12.72, so we one might conclude that BAC is trading at a discount comparatively.
It is also worth noting that BAC currently has a PEG ratio of 1.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.