Bank of America (BAC) closed at $42.40 in the latest trading session, marking a +1.27% move from the prior day. This change outpaced the S&P 500’s 0.08% loss on the day.
Coming into today, shares of the nation’s second-largest bank had gained 9.15% in the past month. In that same time, the Finance sector gained 5.04%, while the S&P 500 gained 0.73%.
Wall Street will be looking for positivity from BAC as it approaches its next earnings report date. On that day, BAC is projected to report earnings of $0.75 per share, which would represent year-over-year growth of 102.7%. Our most recent consensus estimate is calling for quarterly revenue of $21.92 billion, down 1.82% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.03 per share and revenue of $87.73 billion. These totals would mark changes of +62.03% and +2.57%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BAC. 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.
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 past month, the Zacks Consensus EPS estimate has moved 0.16% higher. BAC is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, BAC is currently trading at a Forward P/E ratio of 13.83. For comparison, its industry has an average Forward P/E of 12.35, which means BAC is trading at a premium to the group.
Meanwhile, BAC’s PEG ratio is currently 1.98. 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 1.49 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 72, which puts it in the top 29% 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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