Bank of America (BAC) Stock Sinks As Market Gains: What You Should Know
Bank of America (BAC) closed at $41.36 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500's daily gain of 0.18%.
Heading into today, shares of the nation's second-largest bank had lost 1.18% over the past month, lagging the Finance sector's gain of 3.14% and the S&P 500's gain of 2.43% in that time.
Investors will be hoping for strength from BAC as it approaches its next earnings release. The company is expected to report EPS of $0.75, up 102.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.92 billion, down 1.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.11 per share and revenue of $88.19 billion, which would represent changes of +66.31% and +3.11%, respectively, from the prior year.
Any recent changes to analyst estimates for BAC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. BAC currently has a Zacks Rank of #3 (Hold).
Digging into valuation, BAC currently has a Forward P/E ratio of 13.46. This represents a premium compared to its industry's average Forward P/E of 12.01.
Meanwhile, BAC's PEG ratio is currently 1.92. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.42 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 47% of all 250+ industries.
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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