In the latest trading session, Wells Fargo (WFC) closed at $46.04, marking a +0.81% move from the previous day. This change outpaced the S&P 500's 1.58% loss on the day. Meanwhile, the Dow lost 1.99%, and the Nasdaq, a tech-heavy index, lost 1.63%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 12.89% over the past month. This has lagged the Finance sector's loss of 8.61% and the S&P 500's loss of 6.62% in that time.
Wall Street will be looking for positivity from WFC as it approaches its next earnings report date. This is expected to be January 15, 2019. The company is expected to report EPS of $1.19, up 22.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.27 billion, down 3.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.27 per share and revenue of $86.12 billion, which would represent changes of +3.89% and -2.3%, respectively, from the prior year.
Investors should also note any 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.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. WFC is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, WFC currently has a Forward P/E ratio of 10.69. For comparison, its industry has an average Forward P/E of 10, which means WFC is trading at a premium to the group.
Meanwhile, WFC's PEG ratio is currently 0.96. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.04 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 150, which puts it in the bottom 42% 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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