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Bank of America (BAC) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Bank of America (BAC - Free Report) closed at $30.23, marking a -0.66% move from the previous day. This move lagged the S&P 500's daily loss of 0.55%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.16%.

Heading into today, shares of the nation's second-largest bank had lost 1.36% over the past month, lagging the Finance sector's loss of 0.67% and the S&P 500's gain of 0.37% in that time.

Wall Street will be looking for positivity from BAC as it approaches its next earnings report date. This is expected to be October 15, 2018. The company is expected to report EPS of $0.62, up 29.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $22.66 billion, up 3.74% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.52 per share and revenue of $91.17 billion, which would represent changes of +37.7% and +4.37%, respectively, from the prior year.

Any recent changes to analyst estimates for BAC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BAC currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, BAC is holding a Forward P/E ratio of 12.07. This represents a discount compared to its industry's average Forward P/E of 12.4.

Investors should also note that BAC has a PEG ratio of 1.51 right now. 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 Banks - Major Regional industry currently had an average PEG ratio of 1.19 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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