9. INDUSTRY, INNOVATION, AND INFRASTRUCTURE

Why Bank of America (BAC) Dipped More Than Broader Market Today

Written by Amanda

In the latest market close, Bank of America (BAC) reached $37.52, with a -1.05% movement compared to the previous day. The stock’s change was less than the S&P 500’s daily loss of 0.2%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq added 0.11%.

The nation’s second-largest bank’s shares have seen an increase of 10.39% over the last month, surpassing the Finance sector’s gain of 4.2% and the S&P 500’s gain of 3.32%.

Analysts and investors alike will be keeping a close eye on the performance of Bank of America in its upcoming earnings disclosure. The company’s earnings report is set to go public on April 16, 2024. On that day, Bank of America is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 18.09%. Meanwhile, our latest consensus estimate is calling for revenue of $25.21 billion, down 3.99% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.10 per share and revenue of $99.63 billion, which would represent changes of -9.36% and +1.06%, respectively, from the prior year.

Any recent changes to analyst estimates for Bank of America should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% lower within the past month. At present, Bank of America boasts a Zacks Rank of #3 (Hold).

Investors should also note Bank of America’s current valuation metrics, including its Forward P/E ratio of 12.23. This expresses a premium compared to the average Forward P/E of 11.53 of its industry.

It is also worth noting that BAC currently has a PEG ratio of 1.75. 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. As of the close of trade yesterday, the Banks – Major Regional industry held an average PEG ratio of 1.7.

The Banks – Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 145, positioning it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Bank of America Corporation (BAC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Source: finance.yahoo.com




In the latest market close, Bank of America (BAC) reached $37.52, with a -1.05% movement compared to the previous day. The stock’s change was less than the S&P 500’s daily loss of 0.2%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq added 0.11%.

The nation’s second-largest bank’s shares have seen an increase of 10.39% over the last month, surpassing the Finance sector’s gain of 4.2% and the S&P 500’s gain of 3.32%.

Analysts and investors alike will be keeping a close eye on the performance of Bank of America in its upcoming earnings disclosure. The company’s earnings report is set to go public on April 16, 2024. On that day, Bank of America is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 18.09%. Meanwhile, our latest consensus estimate is calling for revenue of $25.21 billion, down 3.99% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.10 per share and revenue of $99.63 billion, which would represent changes of -9.36% and +1.06%, respectively, from the prior year.

Any recent changes to analyst estimates for Bank of America should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% lower within the past month. At present, Bank of America boasts a Zacks Rank of #3 (Hold).

Investors should also note Bank of America’s current valuation metrics, including its Forward P/E ratio of 12.23. This expresses a premium compared to the average Forward P/E of 11.53 of its industry.

It is also worth noting that BAC currently has a PEG ratio of 1.75. 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. As of the close of trade yesterday, the Banks – Major Regional industry held an average PEG ratio of 1.7.

The Banks – Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 145, positioning it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BAC in the coming trading sessions, be sure to utilize Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Bank of America Corporation (BAC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Source: finance.yahoo.com

About the author

Amanda

Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai

Leave a Comment