Bank of America (BAC) Stock Sinks As Market Gains: Here's Why

In the latest trading session, Bank of America (BAC) closed at $43.89, marking a -0.63% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.16%, and the Nasdaq, a tech-heavy index, added 0.98%.Heading into today, shares of the nation's second-largest bank had lost 6.02% over the past month, lagging the Finance sector's loss of 2.93% and the S&P 500's gain of 0.34% in that time.The investment community will be paying close attention to the earnings performance of Bank of America in its upcoming release. The company is expected to report EPS of $0.79, up 12.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.25 billion, up 14.98% from the prior-year quarter.For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.27 per share and a revenue of $101.82 billion, signifying shifts of -4.39% and +3.29%, respectively, from the last year.It is also important to note the recent changes to analyst estimates for Bank of America. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. As of now, Bank of America holds a Zacks Rank of #3 (Hold).In terms of valuation, Bank of America is currently trading at a Forward P/E ratio of 13.52. This expresses a discount compared to the average Forward P/E of 16.43 of its industry.Investors should also note that BAC has a PEG ratio of 1.35 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Financial - Investment Bank industry stood at 1.37 at the close of the market yesterday.The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% of all 250+ industries.The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 Bank of America Corporation (BAC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks