In the latest trading session, Bank of America (BAC - Free Report) closed at $28.65, marking a +0.35% move from the previous day. This change outpaced the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.18%.
Prior to today's trading, shares of the nation's second-largest bank had gained 1.1% over the past month. This has outpaced the Finance sector's gain of 0.09% and lagged the S&P 500's gain of 1.81% in that time.
BAC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.65, up 5.07% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.41 billion, up 1.25% from the year-ago period.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $2.84 per share and revenue of $94.06 billion. These results would represent year-over-year changes of +8.93% and +3.08%, respectively.
Investors should also note any recent changes to analyst estimates for BAC. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 0.14% lower. BAC currently has a Zacks Rank of #3 (Hold).
Digging into valuation, BAC currently has a Forward P/E ratio of 10.04. Its industry sports an average Forward P/E of 10.72, so we one might conclude that BAC is trading at a discount comparatively.
Meanwhile, BAC's PEG ratio is currently 1.26. 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 1.26 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 142, which puts it in the bottom 45% 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.