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Wells Fargo (WFC) closed at $42 in the latest trading session, marking a -0.26% move from the prior day. This change was narrower than the S&P 500's 0.58% loss on the day. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq added 0.34%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 13.44% over the past month, lagging the Finance sector's loss of 10.03% and the S&P 500's loss of 10.53% in that time.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release. In that report, analysts expect Wells Fargo to post earnings of $0.93 per share. This would mark a year-over-year decline of 32.61%. Our most recent consensus estimate is calling for quarterly revenue of $17.89 billion, down 11.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.14 per share and revenue of $73.39 billion, which would represent changes of -16.36% and -5.94%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. 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.
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 has moved 0.78% higher within the past month. Wells Fargo is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 10.17. This valuation marks a discount compared to its industry's average Forward P/E of 10.39.
Meanwhile, WFC's PEG ratio is currently 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Major Regional industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Wells Fargo & Company (WFC) : Free Stock Analysis Report
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