In the latest trading session, Bank of America ((BA)C) closed at $36.50, marking a +0.22% move from the previous day. This change outpaced the S&P 500’s 1.34% loss on the day. Elsewhere, the Dow lost 1.11%, while the tech-heavy Nasdaq lost 2.11%.
Heading into today, shares of the nation’s second-largest bank had gained 15.33% over the past month, outpacing the Finance sector’s gain of 6% and the S&P 500’s loss of 0.11% in that time.
Wall Street will be looking for positivity from (BA)C as it approaches its next earnings report date. This is expected to be April 15, 2021. On that day, (BA)C is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.02 billion, down 7.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.48 per share and revenue of $84.53 billion, which would represent changes of +32.62% and -1.17%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for (BA)C. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.33% higher. (BA)C currently has a Zacks Rank of #2 (Buy).
In terms of valuation, (BA)C is currently trading at a Forward P/E ratio of 14.67. For comparison, its industry has an average Forward P/E of 13.36, which means (BA)C is trading at a premium to the group.
We can also see that (BA)C currently has a PEG ratio of 2.1. 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 2.02 based on yesterday’s closing prices.
The Banks – Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% 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.
To follow (BA)C in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.