Bank of America (BAC - Free Report) closed the most recent trading day at $22.90, moving -0.04% from the previous trading session. This change was narrower than the S&P 500's 0.78% loss on the day. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq lost 0.97%.
BAC will be looking to display strength as it nears its next earnings release. In that report, analysts expect BAC to post earnings of $0.33 per share. This would mark a year-over-year decline of 55.41%. Meanwhile, our latest consensus estimate is calling for revenue of $21.09 billion, down 8.64% from the prior-year quarter.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $1.48 per share and revenue of $85.68 billion. These results would represent year-over-year changes of -46.18% and -6.1%, respectively.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 6.28% lower within the past month. BAC currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, BAC is currently trading at a Forward P/E ratio of 15.52. This represents a premium compared to its industry's average Forward P/E of 14.91.
It is also worth noting that BAC currently has a PEG ratio of 2.22. 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. The Banks - Major Regional industry currently had an average PEG ratio of 2.48 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 247, which puts it in the bottom 3% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.