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Bank of America (BAC) Beats Stock Market Upswing: What Investors Need to Know

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Bank of America (BAC - Free Report) closed the latest trading day at $39.47, indicating a +1.83% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 1.16%. Meanwhile, the Dow experienced a rise of 1.2%, and the technology-dominated Nasdaq saw an increase of 1.16%.

Heading into today, shares of the nation's second-largest bank had gained 1.25% over the past month, lagging the Finance sector's gain of 5.48% and the S&P 500's gain of 3.48% in that time.

Market participants will be closely following the financial results of Bank of America in its upcoming release. The company plans to announce its earnings on October 15, 2024. The company's upcoming EPS is projected at $0.81, signifying a 10% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $25.48 billion, indicating a 1.25% increase compared to the same quarter of the previous year.

BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.28 per share and revenue of $102.16 billion. These results would represent year-over-year changes of -4.09% and +3.63%, respectively.

It is also important to note the recent changes to analyst estimates for Bank of America. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Bank of America is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, Bank of America is at present trading with a Forward P/E ratio of 11.83. Its industry sports an average Forward P/E of 11.83, so one might conclude that Bank of America is trading at no noticeable deviation comparatively.

One should further note that BAC currently holds a PEG ratio of 1.39. 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 had an average PEG ratio of 1.45 as trading concluded yesterday.

The Banks - Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 45, positioning it in the top 18% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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