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Bank of America (BAC) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Bank of America (BAC - Free Report) closed at $29.94, marking a -0.63% move from the previous day. This change lagged the S&P 500's 0.26% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.4%.
Coming into today, shares of the nation's second-largest bank had gained 10.49% in the past month. In that same time, the Finance sector gained 4.97%, while the S&P 500 gained 3.92%.
Wall Street will be looking for positivity from BAC as it approaches its next earnings report date. On that day, BAC is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 3.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.11 billion, down 2.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $91.01 billion. These totals would mark changes of +8.05% and -0.26%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BAC. Recent revisions tend to reflect the latest near-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. BAC is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note BAC's current valuation metrics, including its Forward P/E ratio of 10.68. For comparison, its industry has an average Forward P/E of 11.58, which means BAC is trading at a discount to the group.
Investors should also note that BAC has a PEG ratio of 1.19 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% 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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Bank of America (BAC) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Bank of America (BAC - Free Report) closed at $29.94, marking a -0.63% move from the previous day. This change lagged the S&P 500's 0.26% gain on the day. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.4%.
Coming into today, shares of the nation's second-largest bank had gained 10.49% in the past month. In that same time, the Finance sector gained 4.97%, while the S&P 500 gained 3.92%.
Wall Street will be looking for positivity from BAC as it approaches its next earnings report date. On that day, BAC is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 3.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.11 billion, down 2.94% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $91.01 billion. These totals would mark changes of +8.05% and -0.26%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BAC. Recent revisions tend to reflect the latest near-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.18% lower. BAC is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note BAC's current valuation metrics, including its Forward P/E ratio of 10.68. For comparison, its industry has an average Forward P/E of 11.58, which means BAC is trading at a discount to the group.
Investors should also note that BAC has a PEG ratio of 1.19 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% 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.