Bank of America (BAC) closed at $27.75 in the latest trading session, marking a -0.25% move from the prior day. This move lagged the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.
Prior to today's trading, shares of the nation's second-largest bank had lost 21.3% over the past month. This has lagged the Finance sector's loss of 11.27% and the S&P 500's loss of 3.9% in that time.
Investors will be hoping for strength from Bank of America as it approaches its next earnings release, which is expected to be April 18, 2023. In that report, analysts expect Bank of America to post earnings of $0.82 per share. This would mark year-over-year growth of 2.5%. Meanwhile, our latest consensus estimate is calling for revenue of $25.37 billion, up 9.21% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.38 per share and revenue of $100.97 billion, which would represent changes of +5.96% and +6.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. Bank of America currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Bank of America is holding a Forward P/E ratio of 8.22. This valuation marks a premium compared to its industry's average Forward P/E of 7.44.
We can also see that BAC currently has a PEG ratio of 1.17. 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. The Banks – Major Regional was holding an average PEG ratio of 1.04 at yesterday's closing price.
The Banks – Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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