Here's Why Bank of America (BAC) Fell More Than Broader Market

In the latest trading session, Bank of America (BAC) closed at $44.09, marking a -1.19% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.13%. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%. Shares of the nation's second-largest bank have appreciated by 0.54% over the course of the past month, underperforming the Finance sector's gain of 1.24%, and the S&P 500's gain of 3.55%.Investors will be eagerly watching for the performance of Bank of America in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 14, 2025. In that report, analysts expect Bank of America to post earnings of $0.9 per share. This would mark year-over-year growth of 8.43%. In the meantime, our current consensus estimate forecasts the revenue to be $26.72 billion, indicating a 5.3% growth compared to the corresponding quarter of the prior year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.69 per share and a revenue of $107.99 billion, indicating changes of +12.5% and +5.99%, respectively, from the former year. Investors should also note any recent changes to analyst estimates for Bank of America. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.39% higher. Bank of America is currently sporting a Zacks Rank of #3 (Hold). Looking at valuation, Bank of America is presently trading at a Forward P/E ratio of 12.11. Its industry sports an average Forward P/E of 14.88, so one might conclude that Bank of America is trading at a discount comparatively. Meanwhile, BAC's PEG ratio is currently 1.21. 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. BAC's industry had an average PEG ratio of 1.21 as of yesterday's close. The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 95, finds itself in the top 39% echelons of all 250+ industries. 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. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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