Bank of America (BAC) Stock Falls on Market Gains: What You Should Know

The latest trading session ended at $39.93 for Bank of America (BAC), representing a shift of -0.08% from the closing price of the previous trading day. The change lagged the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq gained 1.45%.

Shares of the country's second-largest bank rose 1.24% over the previous month, outperforming the financial sector's loss of 4.16% and underperforming the S&P 500's gain of 5.41%.

Analysts and investors will be keeping a close eye on Bank of America's performance in its upcoming earnings release. The company's earnings report is scheduled to be released on October 15, 2024. In this report, analysts expect Bank of America to report earnings of $0.78 per share. This would represent a decrease of 13.33% compared to the previous year. Meanwhile, the latest consensus estimate is calling for revenue of $25.33 billion, up 0.65% from the prior-year quarter.

For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.25 per share and revenue of $101.77 billion, representing changes of -4.97% and +3.24%, respectively corresponds to the previous year.

It is also important to note recent changes to analyst estimates for Bank of America. Recent revisions typically 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 outlook.

Our research suggests that these estimate changes are directly related to upcoming stock price performance. Investors can capitalize on 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 as verified by third-party audits, with stocks rated #1 having an average generate an annual return of +25%. since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.67% lower. Currently, Bank of America has a Zacks Rank of #3 (Hold).

Looking at valuation, Bank of America currently has a forward P/E ratio of 12.28. This does not represent a notable deviation from its industry's average Forward P/E 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 P/E ratio, but this metric also takes into account the company's expected earnings growth rate. The Banks – Large Regional industry had an average PEG ratio of 1.54 as of yesterday's close.

The story continues

Banks – the most important regional industry – are part of the financial sector. Currently, this industry has a Zacks Industry Rank of 94, putting it in the top 38% of over 250 industries.

The Zacks Industry Rank evaluates 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 rated 50% of industries outperform the bottom half by a factor of 2 to 1.

Remember to rely on Zacks.com to monitor all of these stock-influencing metrics and more in subsequent trading sessions.

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