Bank of America (BAC) Laps the Stock Market: Here's Why

Bank of America (BAC) closed at $55.27 in the latest trading session, marking a +1.86% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.88%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 1.31%. Shares of the nation's second-largest bank have appreciated by 6.39% over the course of the past month, outperforming the Finance sector's gain of 4.46%, and the S&P 500's gain of 2.48%.Market participants will be closely following the financial results of Bank of America in its upcoming release. The company plans to announce its earnings on January 14, 2026. The company is predicted to post an EPS of $0.96, indicating a 17.07% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.36 billion, up 7.96% from the year-ago period. BAC's full-year Zacks Consensus Estimates are calling for earnings of $3.81 per share and revenue of $109.37 billion. These results would represent year-over-year changes of +16.16% and +7.34%, respectively. Investors should also note any recent changes to analyst estimates for Bank of America. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Right now, Bank of America possesses a Zacks Rank of #3 (Hold). With respect to valuation, Bank of America is currently being traded at a Forward P/E ratio of 14.25. This indicates a discount in contrast to its industry's Forward P/E of 17.69. The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 30, this industry ranks in the top 13% of all industries, numbering over 250. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow BAC in the coming trading sessions, be sure to utilize Zacks.com. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks