Yahoo Finance Bank of America (BAC) Suffers a Larger Drop Than the General Market: Key Insights
Bank of America (BAC) closed at $36.86 in the latest trading session, marking a -0.51% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.31%. On the other hand, the Dow registered a loss of 0.41%, and the technology-centric Nasdaq decreased by 0.27%.
The nation's second-largest bank's stock has climbed by 9.23% in the past month, exceeding the Finance sector's gain of 3.08% and the S&P 500's gain of 3.05%.
The investment community will be paying close attention to the earnings performance of Bank of America in its upcoming release. The company is slated to reveal its earnings on April 16, 2024. In that report, analysts expect Bank of America to post earnings of $0.77 per share. This would mark a year-over-year decline of 18.09%. Meanwhile, the latest consensus estimate predicts the revenue to be $25.21 billion, indicating a 3.99% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.12 per share and a revenue of $99.63 billion, signifying shifts of -8.77% and +1.06%, respectively, from the last year.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. At present, Bank of America boasts a Zacks Rank of #3 (Hold).
Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 11.86. This denotes a premium relative to the industry's average Forward P/E of 11.21.
One should further note that BAC currently holds a PEG ratio of 1.69. 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 1.64 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
