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Bank of America (BAC) Beats Stock Market Upswing: What Investors Need to Know

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Bank of America (BAC - Free Report) closed at $39.10 in the latest trading session, marking a +1.16% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.52%.

The nation's second-largest bank's shares have seen a decrease of 1.75% over the last month, not keeping up with the Finance sector's gain of 4.44% and the S&P 500's gain of 3.67%.

The upcoming earnings release of Bank of America will be of great interest to investors. The company's earnings report is expected on October 15, 2024. The company is forecasted to report an EPS of $0.80, showcasing a 11.11% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $25.41 billion, indicating a 0.98% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.28 per share and a revenue of $101.93 billion, representing changes of -4.09% and +3.39%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Bank of America is currently a Zacks Rank #3 (Hold).

Looking at valuation, Bank of America is presently trading at a Forward P/E ratio of 11.8. This signifies a discount in comparison to the average Forward P/E of 11.86 for its industry.

We can also see that BAC currently has a PEG ratio of 1.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Banks - Major Regional industry had an average PEG ratio of 1.48 as trading concluded yesterday.

The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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