Bank of America (BAC) ended the recent trading session at $44.38, demonstrating a +1.12% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 1.1%. On the other hand, the Dow registered a gain of 0.91%, and the technology-centric Nasdaq increased by 1.35%.
The nation's second-largest bank's shares have seen a decrease of 7.6% over the last month, not keeping up with the Finance sector's loss of 4.4% and the S&P 500's gain of 0.22%.
The upcoming earnings release of Bank of America will be of great interest to investors. The company is forecasted to report an EPS of $0.79, showcasing a 12.86% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $25.25 billion, indicating a 14.98% upward movement from the same quarter last year.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.27 per share and revenue of $101.82 billion. These results would represent year-over-year changes of -4.39% and +3.29%, respectively.
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 shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. At present, Bank of America boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 13.44. This expresses a discount compared to the average Forward P/E of 16.57 of its industry.
We can additionally observe that BAC currently boasts a PEG ratio of 1.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank industry currently had an average PEG ratio of 1.37 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.