Wells Fargo (WFC) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Wells Fargo (WFC) closed at $37.90, marking a -1.81% move from the previous day. This change lagged the S&P 500's 0.95% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.23%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 12.51% in the past month. In that same time, the Finance sector lost 4.55%, while the S&P 500 lost 3.49%.
Wells Fargo will be looking to display strength as it nears its next earnings release. In that report, analysts expect Wells Fargo to post earnings of $0.90 per share. This would mark a year-over-year decline of 34.78%. Our most recent consensus estimate is calling for quarterly revenue of $17.79 billion, down 12.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.07 per share and revenue of $73.2 billion. These totals would mark changes of -17.78% and -6.18%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Wells Fargo. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 1.74% lower. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 9.49. This represents a discount compared to its industry's average Forward P/E of 9.65.
Investors should also note that WFC has a PEG ratio of 0.93 right now. 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 was holding an average PEG ratio of 1.39 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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