Recent Trading Session and Industry Comparison
Bank of America (BAC) ended the recent trading session at $45.40, demonstrating a +1.32% swing from the preceding day’s closing price. This outperformance is noteworthy, as the S&P 500 registered a daily gain of only 0.55%. Meanwhile, the Dow lost 0.06%, and the tech-heavy Nasdaq gained 1.24%.
Upcoming Earnings Release: Analyst Expectations
The upcoming earnings release of Bank of America will be of great interest to investors. In that report, analysts expect Bank of America to post earnings of $0.78 per share. This would mark year-over-year growth of 11.43%. Our most recent consensus estimate is calling for quarterly revenue of $25.22 billion, up 14.87% from the year-ago period.
Key Takeaways
- Earnings per share (EPS) are expected to grow by 11.43% year-over-year.
- Quarterly revenue is projected to increase by 14.87% compared to the same period last year.
Recent Changes in Analyst Estimates: A Sign of Optimism?
Investors should also note any 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.
Correlation Between Estimate Changes and Stock Prices
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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: A Proven Track Record of Success
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.59% increase.
Bank of America’s Current Zacks Rank
Bank of America is currently sporting a Zacks Rank of #2 (Buy).
Valuation Metrics: A Discount Compared to Industry Average
In terms of valuation, Bank of America is presently being traded at a Forward P/E ratio of 12.22. This represents a discount compared to its industry’s average Forward P/E of 14.54.
Comparable Valuation Metrics: PEG Ratio
It is also worth noting that BAC currently has a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Financial – Investment Bank industry currently had an average PEG ratio of 1.26 as of yesterday’s close.
Industry Performance: Top 9% in All Industries
The Financial – Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% of all 250+ industries.
The Power of the Zacks Industry Rank
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Conclusion: Follow BAC’s Performance with Zacks.com
To follow BAC in the coming trading sessions, be sure to utilize Zacks.com. Stay ahead of the curve with our proven stock-picking models and expert analysis.
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Bank of America Corporation (BAC) : Free Stock Analysis Report
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