Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
Bank of America (BAC) closed at $28.12 in the latest trading session, marking a -1.3% move from the prior day. This move lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.
Heading into today, shares of the nation's second-largest bank had lost 16.72% over the past month, lagging the Finance sector's loss of 7.8% and the S&P 500's gain of 0.07% in that time.
Bank of America will be looking to display strength as it nears its next earnings release, which is expected to be April 18, 2023. In that report, analysts expect Bank of America to post earnings of $0.81 per share. This would mark year-over-year growth of 1.25%. Meanwhile, our latest consensus estimate is calling for revenue of $25.29 billion, up 8.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.37 per share and revenue of $100.8 billion, which would represent changes of +5.64% and +6.17%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Bank of America. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.44% lower. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Bank of America currently has a Forward P/E ratio of 8.46. Its industry sports an average Forward P/E of 7.62, so we one might conclude that Bank of America is trading at a premium comparatively.
Investors should also note that BAC has a PEG ratio of 1.21 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 1.06 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
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