In the latest trading session, Wells Fargo (WFC) closed at $29.55, marking a +1.86% move from the previous day. This move outpaced the S&P 500's daily loss of 0.39%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had gained 10.89% over the past month. This has outpaced the Finance sector's gain of 4.24% and the S&P 500's gain of 4.06% in that time.
Investors will be hoping for strength from WFC as it approaches its next earnings release. In that report, analysts expect WFC to post earnings of $0.60 per share. This would mark a year-over-year decline of 35.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.93 billion, down 9.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.41 per share and revenue of $72.31 billion. These totals would mark changes of -90.64% and -14.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for WFC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.76% higher. WFC is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that WFC has a Forward P/E ratio of 70.91 right now. This valuation marks a premium compared to its industry's average Forward P/E of 14.02.
Investors should also note that WFC has a PEG ratio of 7.31 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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