Bank of America (BAC) Gains As Market Dips: What You Should Know
Bank of America (BAC) closed at $41.75 in the latest trading session, marking a +0.22% move from the prior day.
Bank of America (BAC) closed at $41.75 in the latest trading session, marking a +0.22% move from the prior day. This change outpaced the S&P 500's 0.14% loss on the day.
Heading into today, shares of the nation's second-largest bank had gained 9.75% over the past month, outpacing the Finance sector's gain of 3.47% and the S&P 500's gain of 3.13% in that time.
Wall Street will be looking for positivity from BAC as it approaches its next earnings report date. In that report, analysts expect BAC to post earnings of $0.71 per share. This would mark year-over-year growth of 39.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.7 billion, up 6.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.30 per share and revenue of $87.86 billion. These totals would mark changes of +76.47% and +2.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BAC. 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. 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 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 remained stagnant within the past month. BAC is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that BAC has a Forward P/E ratio of 12.62 right now. This represents a premium compared to its industry's average Forward P/E of 11.07.
Also, we should mention that BAC has a PEG ratio of 1.8. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.23 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 119, putting it in the top 47% 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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