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Bank of America (BAC) Dips More Than Broader Markets: What You Should Know

Bank of America (BAC) closed at $28.22 in the latest trading session, marking a -1.23% move from the prior day. This move lagged the S&P 500's daily loss of 0.44%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.5%.

Coming into today, shares of the nation's second-largest bank had gained 7.04% in the past month. In that same time, the Finance sector gained 4.23%, while the S&P 500 gained 2.71%.

Wall Street will be looking for positivity from BAC as it approaches its next earnings report date. On that day, BAC is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 31.08%. Our most recent consensus estimate is calling for quarterly revenue of $19.91 billion, down 10.9% from the year-ago period.



BAC's full-year Zacks Consensus Estimates are calling for earnings of $1.77 per share and revenue of $85.69 billion. These results would represent year-over-year changes of -35.64% and -6.09%, respectively.

Investors might also notice recent changes to analyst estimates for BAC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 remained stagnant. BAC is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, BAC is currently trading at a Forward P/E ratio of 16.11. For comparison, its industry has an average Forward P/E of 14.39, which means BAC is trading at a premium to the group.

Meanwhile, BAC's PEG ratio is currently 2.3. 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. BAC's industry had an average PEG ratio of 2.03 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Source - https://finance.yahoo.com/news/bank-america-bac-dips-more-224510922.html

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