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

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  • BAC

Bank of America (BAC) closed the most recent trading day at $45.59, moving -0.37% from the previous trading session. This change lagged the S&P 500's 1.32% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, lost 0.15%.

Prior to today's trading, shares of the nation's second-largest bank had lost 4.23% over the past month. This has lagged the Finance sector's loss of 3.63% and the S&P 500's gain of 3.61% in that time.

Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2022. In that report, analysts expect Bank of America to post earnings of $0.78 per share. This would mark year-over-year growth of 32.2%. Meanwhile, our latest consensus estimate is calling for revenue of $21.99 billion, up 9.39% from the prior-year quarter.

BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.49 per share and revenue of $89.18 billion. These results would represent year-over-year changes of +86.63% and +4.27%, 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. Bank of America currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 13.1. This valuation marks a premium compared to its industry's average Forward P/E of 11.63.

We can also see that BAC currently has a PEG ratio of 1.87. 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. BAC's industry had an average PEG ratio of 1.37 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 110, which puts it in the top 44% 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.

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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