Bank of America (BAC) closed at $31.46 in the latest trading session, marking a -1.04% move from the prior day. This move was narrower than the S&P 500’s daily loss of 1.15%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.34%.
Prior to today’s trading, shares of the nation’s second-largest bank had lost 4.16% over the past month. This has was narrower than the Finance sector’s loss of 7.08% and the S&P 500’s loss of 5.08% 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 July 18, 2022. In that report, analysts expect Bank of America to post earnings of $0.79 per share. This would mark a year-over-year decline of 23.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.15 billion, up 7.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.32 per share and revenue of $94.32 billion, which would represent changes of -7% and +5.84%, 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.66% lower. Bank of America is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Bank of America is holding a Forward P/E ratio of 9.57. Its industry sports an average Forward P/E of 9.64, so we one might conclude that Bank of America is trading at a discount comparatively.
Investors should also note that BAC has a PEG ratio of 1.37 right now. 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. Banks – Major Regional stocks are, on average, holding a PEG ratio of 1.37 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 90, which puts it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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