Yahoo Finance Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw Bank of America (BAC) ending at $41.42, denoting a +1.97% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.07%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, added 0.14%.
The nation's second-largest bank's stock has climbed by 2.39% in the past month, exceeding the Finance sector's loss of 5.5% and lagging the S&P 500's gain of 4.34%.
The investment community will be closely monitoring the performance of Bank of America in its forthcoming earnings report. The company is scheduled to release its earnings on July 16, 2024. The company is forecasted to report an EPS of $0.79, showcasing a 10.23% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $25.24 billion, indicating a 0.15% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.24 per share and revenue of $101.69 billion, indicating changes of -5.26% and +3.15%, respectively, compared to the previous year.
Investors should also note any 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.36% upward. 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 12.56. Its industry sports an average Forward P/E of 11.02, so one might conclude that Bank of America is trading at a premium comparatively.
It's also important to note that BAC currently trades at a PEG ratio of 1.54. 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. As of the close of trade yesterday, the Banks - Major Regional industry held an average PEG ratio of 1.54.
The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 166, placing it within the bottom 35% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC) : Free Stock Analysis Report
