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Bank of America (BAC) closed the latest trading day at $46.01, indicating a -1.12% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.24% for the day. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq increased by 0.08%.
Prior to today's trading, shares of the nation's second-largest bank had lost 0.28% over the past month. This has lagged the Finance sector's gain of 3.3% and the S&P 500's gain of 2.37% in that time.
The upcoming earnings release of Bank of America will be of great interest to investors. The company is predicted to post an EPS of $0.81, indicating a 2.41% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $26.71 billion, reflecting a 3.47% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.69 per share and a revenue of $108.38 billion, demonstrating changes of +12.5% and +6.37%, 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 recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. Bank of America is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Bank of America is currently being traded at a Forward P/E ratio of 12.59. This indicates a discount in contrast to its industry's Forward P/E of 14.83.
One should further note that BAC currently holds a PEG ratio of 1.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.09.