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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 $21.20 in the latest trading session, marking a +1.97% move from the prior day. This move outpaced the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.95%, and the tech-heavy Nasdaq gained 2.3%.
Heading into today, shares of the nation's second-largest bank had lost 40.12% over the past month, lagging the Finance sector's loss of 35.64% and the S&P 500's loss of 28.7% in that time.
Investors will be hoping for strength from BAC as it approaches its next earnings release, which is expected to be April 15, 2020. The company is expected to report EPS of $0.73, up 4.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $23.11 billion, up 0.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.92 per share and revenue of $90.47 billion. These totals would mark changes of +6.18% and -0.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BAC. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 4.32% lower within the past month. BAC is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that BAC has a Forward P/E ratio of 7.12 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 7.12.
We can also see that BAC currently has a PEG ratio of 1.02. 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. BAC's industry had an average PEG ratio of 0.79 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 181, which puts it in the bottom 30% 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.
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Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
Bank of America (BAC - Free Report) closed at $21.20 in the latest trading session, marking a +1.97% move from the prior day. This move outpaced the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.95%, and the tech-heavy Nasdaq gained 2.3%.
Heading into today, shares of the nation's second-largest bank had lost 40.12% over the past month, lagging the Finance sector's loss of 35.64% and the S&P 500's loss of 28.7% in that time.
Investors will be hoping for strength from BAC as it approaches its next earnings release, which is expected to be April 15, 2020. The company is expected to report EPS of $0.73, up 4.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $23.11 billion, up 0.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.92 per share and revenue of $90.47 billion. These totals would mark changes of +6.18% and -0.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BAC. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 4.32% lower within the past month. BAC is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that BAC has a Forward P/E ratio of 7.12 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 7.12.
We can also see that BAC currently has a PEG ratio of 1.02. 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. BAC's industry had an average PEG ratio of 0.79 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 181, which puts it in the bottom 30% 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.