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Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Bank of America (BAC - Free Report) closed at $34.29, marking a -0.67% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 1.58%.
Prior to today's trading, shares of the nation's second-largest bank had lost 0.14% over the past month. This has lagged the Finance sector's gain of 0.34% and the S&P 500's gain of 0.84% in that time.
Bank of America will be looking to display strength as it nears its next earnings release. On that day, Bank of America is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 2.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.37 billion, up 9.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.38 per share and revenue of $100.97 billion, which would represent changes of +5.96% and +6.34%, 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 a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% lower. 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 10.2. For comparison, its industry has an average Forward P/E of 9.61, which means Bank of America is trading at a premium to the group.
It is also worth noting that BAC currently has a PEG ratio of 1.46. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.46 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 96, which puts it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Bank of America (BAC - Free Report) closed at $34.29, marking a -0.67% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 1.58%.
Prior to today's trading, shares of the nation's second-largest bank had lost 0.14% over the past month. This has lagged the Finance sector's gain of 0.34% and the S&P 500's gain of 0.84% in that time.
Bank of America will be looking to display strength as it nears its next earnings release. On that day, Bank of America is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 2.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.37 billion, up 9.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.38 per share and revenue of $100.97 billion, which would represent changes of +5.96% and +6.34%, 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 a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% lower. 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 10.2. For comparison, its industry has an average Forward P/E of 9.61, which means Bank of America is trading at a premium to the group.
It is also worth noting that BAC currently has a PEG ratio of 1.46. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.46 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 96, which puts it in the top 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.