In the latest trading session, Bank of America (BAC) closed at $24.47, marking a -0.04% move from the previous day. This change was narrower than the S&P 500's 2.08% loss on the day. At the same time, the Dow lost 2.11%, and the tech-heavy Nasdaq lost 2.27%.
Coming into today, shares of the nation's second-largest bank had lost 12.26% in the past month. In that same time, the Finance sector lost 5.28%, while the S&P 500 lost 3.6%.
BAC will be looking to display strength as it nears its next earnings release, which is expected to be January 16, 2019. In that report, analysts expect BAC to post earnings of $0.64 per share. This would mark year-over-year growth of 36.17%. Our most recent consensus estimate is calling for quarterly revenue of $22.39 billion, up 9.55% from the year-ago period.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $2.55 per share and revenue of $91.11 billion. These results would represent year-over-year changes of +39.34% and +4.31%, respectively.
It is also important to note the recent changes to analyst estimates for BAC. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BAC currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, BAC is holding a Forward P/E ratio of 9.6. Its industry sports an average Forward P/E of 10.23, so we one might conclude that BAC is trading at a discount comparatively.
We can also see that BAC currently has a PEG ratio of 1.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Major Regional was holding an average PEG ratio of 1.09 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.