Yahoo Finance Bank of America (BAC) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Bank of America (BAC) closed at $31.46, marking a -1.44% move from the previous day. This change lagged the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.15%, while the tech-heavy Nasdaq added 0.39%.
Coming into today, shares of the nation's second-largest bank had lost 4.92% in the past month. In that same time, the Finance sector lost 3.21%, while the S&P 500 lost 3.51%.
Wall Street will be looking for positivity from Bank of America as it approaches its next earnings report date. This is expected to be October 17, 2022. The company is expected to report EPS of $0.80, down 5.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.62 billion, up 3.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.20 per share and revenue of $93.62 billion, which would represent changes of -10.36% and +5.06%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Bank of America currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Bank of America currently has a Forward P/E ratio of 9.97. This represents a premium compared to its industry's average Forward P/E of 9.74.
It is also worth noting that BAC currently has a PEG ratio of 1.42. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices.
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 individual 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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