The most recent trading session ended with Bank of America (BAC) at $39.93, reflecting a -0.08% shift from the previous trading day’s closing price. This change lagged the S&P 500’s daily gain of 0.97%. Elsewhere, the Dow Jones Industrial Average gained 0.3%, while the tech-heavy Nasdaq rose 1.45%.

Shares of the country’s second-largest bank posted a 1.24% gain last month, outpacing the financial sector’s 4.16% loss and underperforming the gains of the S&P 500 of 5.41%.

Analysts and investors alike will be keeping a close eye on Bank of America’s performance with its upcoming earnings release. The company’s earnings report is expected to be made public on October 15, 2024. In that report, analysts expect Bank of America to post earnings of $0.78 per share. This would represent a year-over-year decline of 13.33%. Meanwhile, the latest consensus estimate predicts revenue will reach $25.33 billion, indicating an increase of 0.65% compared to the same quarter of the previous year.

For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.25 per share and revenue of $101.77 billion, which would represent changes of -4.97% and +3.24%, respectively, from the prior year .

It is also important to note the recent changes to analyst estimates for Bank of America. Recent revisions generally reflect the latest short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business prospects.

Our research shows that these estimate changes are directly related to future stock price movements. Investors can take advantage of this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable track record of outperformance, validated by third-party audits, with stocks rated No. 1 rating deliver an average annual return of +25%. since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.67% lower. Currently, Bank of America sports a Zacks Rank of #3 (Hold).

Looking at the valuation, Bank of America currently has a price-to-earnings ratio of 12.28. This doesn’t represent a noticeable deviation compared to the industry’s average forward price-to-earnings ratio of 12.28.

It’s also worth noting that BAC currently has a PEG ratio of 1.38. The PEG ratio is similar to the commonly used price-to-earnings ratio, but this metric also takes into account the company’s expected earnings growth. The Banks – Major Regional sector had an average PEG ratio of 1.54 when trading closed yesterday.

The story continues

The Banks – Major Regional industry is part of the financial sector. Currently, this sector has a Zacks Industry Rank of 94, putting it in the top 38% of more than 250 industries.

The Zacks Industry Rank assesses the strength of our specific industry groups by calculating the average Zacks Rank of the individual stocks included in the groups. Our research shows that the top 50% of sectors perform better than the bottom half by a factor of 2 to 1.

Keep in mind that you can rely on Zacks.com to see all of these metrics impacting the stock, and more, in subsequent trading sessions.

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