U.S. Markets open in 2 hrs 11 mins

Wells Fargo (WFC) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Wells Fargo (WFC) closed at $47.53, marking a -0.5% move from the previous day. This change lagged the S&P 500's 0.48% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.78%.

Coming into today, shares of the biggest U.S. mortgage lender had gained 4.03% in the past month. In that same time, the Finance sector gained 4.67%, while the S&P 500 gained 5.97%.

Wall Street will be looking for positivity from WFC as it approaches its next earnings report date. This is expected to be July 16, 2019. The company is expected to report EPS of $1.15, up 6.48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.87 billion, down 3.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.68 per share and revenue of $83.28 billion. These totals would mark changes of +9.35% and -3.62%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for WFC. 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 company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.18% lower. WFC is currently a Zacks Rank #3 (Hold).

In terms of valuation, WFC is currently trading at a Forward P/E ratio of 10.22. This valuation marks a discount compared to its industry's average Forward P/E of 11.17.

Investors should also note that WFC has a PEG ratio of 0.92 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WFC's industry had an average PEG ratio of 1.39 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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
Wells Fargo & Company (WFC) : Free Stock Analysis Report
To read this article on Zacks.com click here.