Bank of America Corp (NYSE:BAC) shares are trading higher by 1.8% to $39.48 during Thursday's session. The stock is rising following the release of favorable economic data indicating a sharp rebound in U.S. retail sales and an improvement in the labor market.

The U.S. Census Bureau's preliminary data showed that retail sales jumped by 1% month-over-month in July, a sharp recovery from June's stagnation and significantly surpassing the anticipated 0.3% rise.

This growth in consumer spending is indicative of a strong economic environment, which benefits financial institutions through increased consumer borrowing and higher transaction volumes.

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For Bank of America, this uptick in retail sales has several implications. As consumer spending rises, so does the demand for credit products such as personal loans, credit cards, and auto loans, all of which are key revenue drivers for the bank.

Higher consumer confidence and spending also boost transaction volumes, benefiting Bank of America's fee-based income from retail banking services. Additionally, strong retail sales can lead to higher levels of deposits and investment account balances, further enhancing the bank's liquidity and overall financial health.

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Is BAC A Good Stock To Buy?

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.

Bank of America (NYSE:BAC) has reported average annual revenue growth of 2.74% over the past 5 years. .

It's also important to pay attention to valuation when deciding whether to buy a stock. Bank of America has a forward P/E ratio of 11.76. This means investors are paying $11.76 for each dollar of expected earnings in the future. The average forward P/E ratio of Bank of America's peers is 10.97.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.

BAC has a 52-week high of $44.44 and a 52-week low of $24.96.

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