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Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Bank of America (BAC - Free Report) closed at $29.20, marking a +1.78% move from the previous day. This change outpaced the S&P 500's 0.12% gain on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.14%.
Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be July 18, 2023. The company is expected to report EPS of $0.78, up 6.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.11 billion, up 10.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.40 per share and revenue of $100.7 billion, which would represent changes of +6.58% and +6.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Bank of America. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.71% 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 8.45. For comparison, its industry has an average Forward P/E of 7.86, which means Bank of America is trading at a premium to the group.
We can also see that BAC currently has a PEG ratio of 1.21. 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 1.24 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 211, which puts it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Bank of America (BAC - Free Report) closed at $29.20, marking a +1.78% move from the previous day. This change outpaced the S&P 500's 0.12% gain on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.14%.
Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be July 18, 2023. The company is expected to report EPS of $0.78, up 6.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $25.11 billion, up 10.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.40 per share and revenue of $100.7 billion, which would represent changes of +6.58% and +6.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Bank of America. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.71% 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 8.45. For comparison, its industry has an average Forward P/E of 7.86, which means Bank of America is trading at a premium to the group.
We can also see that BAC currently has a PEG ratio of 1.21. 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 1.24 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 211, which puts it in the bottom 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.