Is it time to Buy before this week’s earning report Bank of America (NYSE:BAC)

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Earnings results for Bank of America (NYSE:BAC)

Bank of America Corporation is expected* to report earnings on 10/14/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 10 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.53. The reported EPS for the same quarter last year was $0.75.

Bank of America last released its earnings results on July 16th, 2020. The financial services provider reported $0.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.09. The company had revenue of $22.30 billion for the quarter, compared to the consensus estimate of $21.71 billion. Its revenue was down 3.5% compared to the same quarter last year. Bank of America has generated $2.94 earnings per share over the last year and currently has a price-to-earnings ratio of 12.1. Bank of America has confirmed that its next quarterly earnings report will be published on Wednesday, October 14th, 2020.

Analyst Opinion on Bank of America (NYSE:BAC)

22 Wall Street analysts have issued ratings and price targets for Bank of America in the last 12 months. Their average twelve-month price target is $29.50, predicting that the stock has a possible upside of 18.24%. The high price target for BAC is $39.00 and the low price target for BAC is $21.00. There are currently 1 sell rating, 7 hold ratings and 14 buy ratings for the stock, resulting in a consensus rating of “Buy.” Bank of America also publishes sell-side equities research reports and recommendations about other companies, which can be viewed at this link.

Bank of America has received a consensus rating of Buy. The company’s average rating score is 2.59, and is based on 14 buy ratings, 7 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $29.50, Bank of America has a forecasted upside of 18.2% from its current price of $24.95. Bank of America has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Bank of America (NYSE:BAC)

Bank of America pays a meaningful dividend of 2.80%, higher than the bottom 25% of all stocks that pay dividends. Bank of America has only been increasing its dividend for 4 years. The dividend payout ratio of Bank of America is 24.49%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Bank of America will have a dividend payout ratio of 36.73% next year. This indicates that Bank of America will be able to sustain or increase its dividend.

Insiders buying/selling: Bank of America (NYSE:BAC)

In the past three months, Bank of America insiders have bought more of their company’s stock than they have sold. Specifically, they have bought $2,070,253,228.00 in company stock and sold $0.00 in company stock. Only 0.20% of the stock of Bank of America is held by insiders. 68.19% of the stock of Bank of America is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Bank of America (NYSE:BAC

Earnings for Bank of America are expected to grow by 18.79% in the coming year, from $1.65 to $1.96 per share. The P/E ratio of Bank of America is 12.05, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 19.81. The P/E ratio of Bank of America is 12.05, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 18.66. Bank of America has a PEG Ratio of 2.13. PEG Ratios above 1 indicate that a company could be overvalued. Bank of America has a P/B Ratio of 0.93. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

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