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Bank of America (BAC) closed the most recent trading day at $34.45, moving -1.23% from the previous trading session. This change lagged the S&P 500's 0.58% loss on the day. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, added 0.34%.
Prior to today's trading, shares of the nation's second-largest bank had lost 12.05% over the past month. This has lagged the Finance sector's loss of 10.03% and the S&P 500's loss of 10.53% in that time.
Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. In that report, analysts expect Bank of America to post earnings of $0.81 per share. This would mark a year-over-year decline of 21.36%. Meanwhile, our latest consensus estimate is calling for revenue of $23.17 billion, up 7.96% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.31 per share and revenue of $94.22 billion. These totals would mark changes of -7.28% and +5.74%, respectively, from last year.
Any recent changes to analyst estimates for Bank of America should also be noted by investors. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Bank of America has a Forward P/E ratio of 10.55 right now. This valuation marks a premium compared to its industry's average Forward P/E of 10.39.
Investors should also note that BAC has a PEG ratio of 1.51 right now. 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 was holding an average PEG ratio of 1.51 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.
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