Bank of America (BAC) closed at $28.84 in the latest trading session, marking a +1.03% move from the prior day. This change outpaced the S&P 500's 0% on the day. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq gained 0.25%.
Coming into today, shares of the nation's second-largest bank had lost 1.69% in the past month. In that same time, the Finance sector lost 0.09%, while the S&P 500 gained 2.36%.
Investors will be hoping for strength from BAC as it approaches its next earnings release, which is expected to be April 16, 2019. The company is expected to report EPS of $0.66, up 6.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.34 billion, up 0.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.87 per share and revenue of $94.03 billion. These totals would mark changes of +9.96% and +3.05%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BAC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.24% higher. BAC is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, BAC currently has a Forward P/E ratio of 9.96. For comparison, its industry has an average Forward P/E of 10.67, which means BAC is trading at a discount to the group.
Meanwhile, BAC's PEG ratio is currently 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 1.24 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.
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