We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Bank of America (BAC - Free Report) closed the most recent trading day at $33.89, moving -1.51% from the previous trading session. This move lagged the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq gained 11.55%.
Heading into today, shares of the nation's second-largest bank had gained 6.27% over the past month, outpacing the Finance sector's loss of 1.02% and the S&P 500's loss of 1.03% in that time.
Investors will be hoping for strength from Bank of America as it approaches its next earnings release, which is expected to be January 13, 2023. On that day, Bank of America is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 2.44%. Meanwhile, our latest consensus estimate is calling for revenue of $24.3 billion, up 10.15% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Bank of America. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 2.1% lower within the past month. Bank of America currently has a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 9.49. Its industry sports an average Forward P/E of 9.26, so we one might conclude that Bank of America is trading at a premium comparatively.
We can also see that BAC currently has a PEG ratio of 1.36. 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. BAC's industry had an average PEG ratio of 1.31 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
Bank of America (BAC - Free Report) closed the most recent trading day at $33.89, moving -1.51% from the previous trading session. This move lagged the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq gained 11.55%.
Heading into today, shares of the nation's second-largest bank had gained 6.27% over the past month, outpacing the Finance sector's loss of 1.02% and the S&P 500's loss of 1.03% in that time.
Investors will be hoping for strength from Bank of America as it approaches its next earnings release, which is expected to be January 13, 2023. On that day, Bank of America is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 2.44%. Meanwhile, our latest consensus estimate is calling for revenue of $24.3 billion, up 10.15% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Bank of America. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 2.1% lower within the past month. Bank of America currently has a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 9.49. Its industry sports an average Forward P/E of 9.26, so we one might conclude that Bank of America is trading at a premium comparatively.
We can also see that BAC currently has a PEG ratio of 1.36. 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. BAC's industry had an average PEG ratio of 1.31 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.