Wells Fargo (WFC) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Wells Fargo (WFC) closed at $49.29, marking a +1.92% move from the previous day. This change outpaced the S&P 500's 0.22% gain on the day.
Heading into today, shares of the biggest U.S. mortgage lender had gained 7.13% over the past month, outpacing the Finance sector's gain of 3.25% and the S&P 500's gain of 1.86% in that time.
WFC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.02, up 82.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.69 billion, down 0.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.37 per share and revenue of $74.06 billion, which would represent changes of +965.85% and +2.38%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for WFC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.69% higher. WFC currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that WFC has a Forward P/E ratio of 11.06 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 11.06.
Meanwhile, WFC's PEG ratio is currently 1.08. 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. WFC's industry had an average PEG ratio of 1.22 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% 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.
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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