In the latest trading session, Wells Fargo (WFC) closed at $43.71, marking a -0.97% move from the previous day. This change lagged the S&P 500's 0.78% loss on the day. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 0.19%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 2.94% in the past month. In that same time, the Finance sector lost 1.15%, while the S&P 500 lost 3.4%.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release. On that day, Wells Fargo is projected to report earnings of $1.11 per share, which would represent a year-over-year decline of 5.13%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.71 billion, down 0.67% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $72.91 billion. These results would represent year-over-year changes of -19.19% and -6.55%, respectively.
Investors should also note any recent changes to analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 11.05 right now. This valuation marks a premium compared to its industry's average Forward P/E of 10.09.
Also, we should mention that WFC has a PEG ratio of 1.08. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.29 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Wells Fargo & Company (WFC) : Free Stock Analysis Report
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