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Bank of America (BAC) Stock Declines While Market Improves: Some Information for Investors

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Bank of America (BAC - Free Report) closed the most recent trading day at $39.45, moving -1.05% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.25%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.56%.

Shares of the nation's second-largest bank have depreciated by 0.13% over the course of the past month, underperforming the Finance sector's gain of 1.86% and the S&P 500's gain of 1.65%.

Investors will be eagerly watching for the performance of Bank of America in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 15, 2024. In that report, analysts expect Bank of America to post earnings of $0.80 per share. This would mark a year-over-year decline of 11.11%. Our most recent consensus estimate is calling for quarterly revenue of $25.46 billion, up 1.16% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.28 per share and revenue of $102.01 billion. These totals would mark changes of -4.09% and +3.48%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Bank of America. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.16% rise in the Zacks Consensus EPS estimate. Bank of America currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Bank of America is currently being traded at a Forward P/E ratio of 12.15. This denotes a discount relative to the industry's average Forward P/E of 12.48.

One should further note that BAC currently holds a PEG ratio of 1.37. 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. BAC's industry had an average PEG ratio of 1.53 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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