Bank Of America Rationale Behind the Upgrade

  BAC Rationale Behind the Upgrade Bank Of America (BAC) Can Be A Solid Choice For İnvestors. This upgrade is primarily known to reflect the upward trend in earnings estimates. Analysts monitor EPS estimates via Zacks Consensus Estimate. Investors prefer the easier Zacks rating system over Wall Street analysts' reports. Usually these are mostly driven by subjective factors that are difficult to see and measure in real time. Therefore, the Zacks rating upgrade for Bank of America has a positive effect. This also shows profit.

Most Powerful Force Impacting Stock Prices

The stock is known to be strongly correlated with short-term price action, as reflected in earnings forecast revisions. A decrease or increase in earnings estimates affects whether institutional investors buy or sell that stock. For Bank of America BAC (NYSE) $40,31 +0,11 (+%0,27) increased earnings forecasts and the associated rating upgrade mean an improvement in the company's core business. So it will push stocks even higher.

Bank Of America (BAC) Can Be A Solid Choice For İnvestors.

Harnessing the Power of Earnings Estimate Revisions

Historical research is known to show a strong correlation between trends in earnings forecast revisions and short-term stock movements. That's why it's really helpful to monitor such revisions for investment decision making. Therefore, the Zacks Rank stock rating system plays an important role and its analysis serves as a guide.

Earnings Estimate Revisions for Bank of America

For the fiscal year ending December 2021, the country's second-largest bank is expected to earn $3,12 per share, up 66,8% from last year. Analysts have been steadily raising their estimates for Bank of America.

Bottom Line

According to the Zacks rating system BAC stock's superior earnings forecast shows revision characteristics, making it a solid candidate to generate market-beating returns in the near term.  

Source: Yahoo.Finance

 

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