Analysts are weighing in on how Bank of America Corp (NYSE:BAC), might perform in the near term. Wall Street analysts have a much favorable assessment of the stock, with a mean rating of 1.9. The stock is rated as buy by 17 analysts, with 10 outperform and 6 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.
For the current quarter, the 29.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.37 a share, which would compare with $0.45 in the same quarter last year. They have a high estimate of $0.43 and a low estimate of $0.34. Revenue for the period is expected to total nearly $20.95B from $22.34B the year-ago period.
For the full year, 30.00 Wall Street analysts forecast this company would deliver earnings of 1.32 per share, with a high estimate of $1.42 and a low estimate of $1.20. It had reported earnings per share of $1.38 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $83.46B versus 84.24B in the preceding year.
The analysts project the company to maintain annual growth of around 7.43% percent over the next five years as compared to an average growth rate of 8.20% percent expected for its competitors in the same industry.
Among the 31 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for BAC is $17.40 but some analysts are projecting the price to go as high as $20.00. If the optimistic analysts are correct, that represents a 47 percent upside potential from the recent closing price of $13.62. Some sell-side analysts, particularly the bearish ones, have called for $15.00 price targets on shares of Bank of America Corp (NYSE:BAC).
In the last reported results, the company reported earnings of $0.45 per share, while analysts were calling for share earnings of $0.36. It was an earnings surprise of 25.00%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.
Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through five segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, Global Markets, and Legacy Assets & Servicing. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products, as well as credit and debit cards, residential mortgages and home equity loans, and direct and indirect loans. This segment provides its products and services through approximately 4,700 financial centers, 16,000 ATMs, call centers, and online and mobile platforms. The Global Wealth & Investment Management segment offers investment management, brokerage, banking, and retirement products, as well as wealth management and customized solutions. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, real estate lending, and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. The Legacy Assets & Servicing segment engages in mortgage servicing activities related to residential first mortgage and home equity loans; and managing legacy exposures related to mortgage origination, sales, and servicing. Bank of America Corporation was founded in 1874 and is based in Charlotte, North Carolina.