In the latest trading session, Bank of America (BAC) closed at $30.93, marking a -0.26% move from the previous day. This change lagged the S&P 500's 0.01% gain on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.26%.
Coming into today, shares of the nation's second-largest bank had lost 0.86% in the past month. In that same time, the Finance sector gained 0.5%, while the S&P 500 gained 3.23%.
Wall Street will be looking for positivity from BAC as it approaches its next earnings report date. This is expected to be October 12, 2018. On that day, BAC is projected to report earnings of $0.63 per share, which would represent year-over-year growth of 31.25%. Our most recent consensus estimate is calling for quarterly revenue of $22.70 billion, up 3.94% from the year-ago period.
BAC's full-year Zacks Consensus Estimates are calling for earnings of $2.52 per share and revenue of $91.64 billion. These results would represent year-over-year changes of +37.7% and +4.91%, respectively.
It is also important to note the recent changes to analyst estimates for BAC. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.04% lower. BAC is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that BAC has a Forward P/E ratio of 12.28 right now. For comparison, its industry has an average Forward P/E of 12.71, which means BAC is trading at a discount to the group.
Meanwhile, BAC's PEG ratio is currently 1.54. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.