Bank of America (BAC) closed at $ 42.40 in the last trading session, a move of + 1.27% from the previous day. That change outpaced the S&P 500’s loss of 0.08% that day.
The shares of the country’s second largest bank had risen 9.15% last month. At the same time, the financial sector rose 5.04% while the S&P 500 rose 0.73%.
Wall Street will be looking for a positive record from BAC as it nears its next earnings report. On that day, BAC is expected to post earnings of $ 0.75 per share, up 102.7% year over year. Our latest consensus estimate is for quarterly revenue of $ 21.92 billion, down 1.82% from the same period last year.
Looking at the full year, our Zacks Consensus estimates expect analysts to expect earnings of $ 3.03 per share and revenue of $ 87.73 billion. These sums would mean changes of + 62.03% and + 2.57% compared to the previous year.
Investors might also notice the recent changes in analysts’ guidance for BAC. These recent revisions tend to reflect developments in short term business trends. As a result, we can interpret positive estimates as a good sign of the company’s business outlook.
Research shows that these estimated revisions correlate directly with the short-term dynamics of the stock price. We developed the Zacks rank to take advantage of this phenomenon. Our system takes these changes in estimates into account and provides a clear, actionable valuation model.
The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive, externally verified track record of outperformance, with the # 1 stocks posting average annual returns since 1988 of + 25% Last month, Zack’s Consensus EPS estimate rose 0.16%. BAC currently has a Zacks rank of # 3 (Hold).
In terms of valuation, BAC is currently trading at a forward P / E ratio of 13.83. For comparison, the industry has an average forward P / E of 12.35, which means that BAC is trading at a premium to the group.
BAC’s PEG ratio is currently 1.98. This metric is used in a manner similar to the famous P / E ratio, but the P / E ratio also takes into account the stock’s expected earnings growth rate. The banks – large regional industry currently had an average PEG rate of 1.49 at yesterday’s closing price.
The banks – important regional industry is part of the financial sector. This industry currently has a Zacks industry rank of 72, making it one of the top 29% of all over 250 industries.
The Zacks Industry Rank ranks best to worst in terms of the average Zacks rank of each company in each of these sectors. Our research shows that the industries with the top 50% outperform the bottom half by a factor of 2 to 1.
For more information on all of these metrics and more, visit Zacks.com.
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