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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
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Wells Fargo (WFC - Free Report) closed the most recent trading day at $45.33, moving +0.22% from the previous trading session. This move lagged the S&P 500's daily gain of 1.53%. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 0.04% over the past month. This has was narrower than the Finance sector's loss of 1.54% and the S&P 500's loss of 3.1% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. The company is expected to report EPS of $1.11, down 5.13% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.72 billion, down 0.62% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $72.93 billion. These results would represent year-over-year changes of -19.19% and -6.53%, respectively.
It is also important to note the recent changes to analyst estimates for Wells Fargo. These recent revisions tend to reflect the evolving nature of short-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. 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.
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 0.05% higher. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Wells Fargo currently has a Forward P/E ratio of 11.31. Its industry sports an average Forward P/E of 10.39, so we one might conclude that Wells Fargo is trading at a premium comparatively.
Also, we should mention that WFC has a PEG ratio of 1.11. 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 1.35 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
Wells Fargo (WFC - Free Report) closed the most recent trading day at $45.33, moving +0.22% from the previous trading session. This move lagged the S&P 500's daily gain of 1.53%. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 0.14%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 0.04% over the past month. This has was narrower than the Finance sector's loss of 1.54% and the S&P 500's loss of 3.1% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. The company is expected to report EPS of $1.11, down 5.13% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.72 billion, down 0.62% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $72.93 billion. These results would represent year-over-year changes of -19.19% and -6.53%, respectively.
It is also important to note the recent changes to analyst estimates for Wells Fargo. These recent revisions tend to reflect the evolving nature of short-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. 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.
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 0.05% higher. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Wells Fargo currently has a Forward P/E ratio of 11.31. Its industry sports an average Forward P/E of 10.39, so we one might conclude that Wells Fargo is trading at a premium comparatively.
Also, we should mention that WFC has a PEG ratio of 1.11. 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 1.35 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.