In the latest trading session, Bank of America (BAC) closed at $28.26, marking a -0.18% move from the previous day. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq lost 2.33%.
Prior to today's trading, shares of the nation's second-largest bank had lost 2.51% over the past month. This has lagged the Finance sector's loss of 2.32% and the S&P 500's gain of 1.03% in that time.
Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. On that day, Bank of America is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 17.81%. Meanwhile, our latest consensus estimate is calling for revenue of $25.23 billion, up 11.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.42 per share and revenue of $100.92 billion. These totals would mark changes of +7.21% and +6.29%, respectively, from last year.
Any recent changes to analyst estimates for Bank of America should also be noted by investors. 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.
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 0.69% higher within the past month. Bank of America is currently a Zacks Rank #3 (Hold).
In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 8.28. Its industry sports an average Forward P/E of 7.47, so we one might conclude that Bank of America is trading at a premium comparatively.
Meanwhile, BAC's PEG ratio is currently 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.11 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 232, which puts it in the bottom 8% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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