Back to top

Image: Bigstock

Bank of America (BAC) Stock Moves -0.45%: What You Should Know

Read MoreHide Full Article

The latest trading session saw Bank of America (BAC - Free Report) ending at $30.82, denoting a -0.45% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.84%.

Coming into today, shares of the nation's second-largest bank had gained 8.94% in the past month. In that same time, the Finance sector gained 10.48%, while the S&P 500 gained 8.62%.

Analysts and investors alike will be keeping a close eye on the performance of Bank of America in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.71, signifying a 16.47% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $24.11 billion, reflecting a 1.71% fall from the equivalent quarter last year.

BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.43 per share and revenue of $100.78 billion. These results would represent year-over-year changes of +7.52% and +6.14%, respectively.

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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.11% higher. Bank of America presently features a Zacks Rank of #3 (Hold).

Investors should also note Bank of America's current valuation metrics, including its Forward P/E ratio of 9.02. This indicates a discount in contrast to its industry's Forward P/E of 9.13.

It is also worth noting that BAC currently has a PEG ratio of 1.29. 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 Banks - Major Regional industry currently had an average PEG ratio of 1.48 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bank of America Corporation (BAC) - free report >>

Published in