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Bank of America (BAC) Gains As Market Dips: What You Should Know
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In the latest trading session, Bank of America (BAC - Free Report) closed at $29.86, marking a +0.3% move from the previous day. This change outpaced the S&P 500's 0.33% loss on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the nation's second-largest bank had lost 12.44% over the past month. This has lagged the Finance sector's loss of 11.3% and the S&P 500's loss of 11.67% in that time.
Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be October 17, 2022. In that report, analysts expect Bank of America to post earnings of $0.79 per share. This would mark a year-over-year decline of 7.06%. Meanwhile, our latest consensus estimate is calling for revenue of $23.6 billion, up 3.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.18 per share and revenue of $93.48 billion, which would represent changes of -10.92% and +4.9%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Bank of America. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% lower. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 9.35. Its industry sports an average Forward P/E of 9.16, so we one might conclude that Bank of America is trading at a premium comparatively.
It is also worth noting that BAC currently has a PEG ratio of 1.34. 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 1.12 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 56, which puts it in the top 23% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Bank of America (BAC) Gains As Market Dips: What You Should Know
In the latest trading session, Bank of America (BAC - Free Report) closed at $29.86, marking a +0.3% move from the previous day. This change outpaced the S&P 500's 0.33% loss on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the nation's second-largest bank had lost 12.44% over the past month. This has lagged the Finance sector's loss of 11.3% and the S&P 500's loss of 11.67% in that time.
Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be October 17, 2022. In that report, analysts expect Bank of America to post earnings of $0.79 per share. This would mark a year-over-year decline of 7.06%. Meanwhile, our latest consensus estimate is calling for revenue of $23.6 billion, up 3.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.18 per share and revenue of $93.48 billion, which would represent changes of -10.92% and +4.9%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Bank of America. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% lower. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 9.35. Its industry sports an average Forward P/E of 9.16, so we one might conclude that Bank of America is trading at a premium comparatively.
It is also worth noting that BAC currently has a PEG ratio of 1.34. 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 1.12 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 56, which puts it in the top 23% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.