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Bank of America (BAC) Stock Moves -1.06%: What You Should Know

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Bank of America (BAC - Free Report) closed the most recent trading day at $42.82, moving -1.06% from the previous trading session. This change was narrower than the S&P 500's 1.12% loss on the day. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq decreased by 2.04%.

Shares of the nation's second-largest bank witnessed a loss of 1.5% over the previous month, trailing the performance of the Finance sector with its loss of 0.06% and outperforming the S&P 500's loss of 2.91%.

Analysts and investors alike will be keeping a close eye on the performance of Bank of America in its upcoming earnings disclosure. 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 3.61%. At the same time, our most recent consensus estimate is projecting a revenue of $26.73 billion, reflecting a 3.55% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.68 per share and a revenue of $108.4 billion, demonstrating changes of +12.2% and +6.39%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. Bank of America is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Bank of America is currently exchanging hands at a Forward P/E ratio of 11.76. For comparison, its industry has an average Forward P/E of 15.4, which means Bank of America is trading at a discount to the group.

Meanwhile, BAC's PEG ratio is currently 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 1.1 as trading concluded yesterday.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 31, this industry ranks in the top 13% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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