In the latest trading session, Bank of America (BAC) closed at $37.70, marking a +0.24% move from the previous day. This move outpaced the S&P 500's daily loss of 0.03%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the nation's second-largest bank had gained 4.85% over the past month. This has lagged the Finance sector's gain of 8.94% and the S&P 500's gain of 6.23% in that time.
Bank of America will be looking to display strength as it nears its next earnings release. On that day, Bank of America is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 2.44%. Meanwhile, our latest consensus estimate is calling for revenue of $24.44 billion, up 10.81% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.19 per share and revenue of $94.9 billion, which would represent changes of -10.64% and +6.49%, respectively, from the prior year.
Any recent changes to analyst estimates for Bank of America should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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.
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. The Zacks Consensus EPS estimate has moved 0.35% lower within the past month. Bank of America is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Bank of America is holding a Forward P/E ratio of 11.81. Its industry sports an average Forward P/E of 10.64, so we one might conclude that Bank of America is trading at a premium comparatively.
We can also see that BAC currently has a PEG ratio of 1.69. 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 Banks - Major Regional industry currently had an average PEG ratio of 1.35 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report