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Bank of America (BAC) Gains As Market Dips: What You Should Know

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In the latest trading session, Bank of America (BAC) closed at $32.35, marking a +0.12% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the nation's second-largest bank had lost 12.72% over the past month, lagging the Finance sector's loss of 3.72% and the S&P 500's loss of 0.62% in that time.

Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be July 18, 2022. On that day, Bank of America is projected to report earnings of $0.81 per share, which would represent a year-over-year decline of 21.36%. Meanwhile, our latest consensus estimate is calling for revenue of $23.2 billion, up 8.08% from the prior-year quarter.

BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $94.5 billion. These results would represent year-over-year changes of -6.44% and +6.05%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, 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 0.11% lower. Bank of America is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Bank of America is holding a Forward P/E ratio of 9.66. Its industry sports an average Forward P/E of 9.96, so we one might conclude that Bank of America is trading at a discount comparatively.

Investors should also note that BAC has a PEG ratio of 1.38 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Major Regional industry currently had an average PEG ratio of 1.38 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.

To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.


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