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Wells Fargo (WFC) Dips More Than Broader Markets: What You Should Know

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Wells Fargo (WFC - Free Report) closed at $43.31 in the latest trading session, marking a -0.53% move from the prior day. This change lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the biggest U.S. mortgage lender had gained 1.54% over the past month, outpacing the Finance sector's loss of 2.26% and the S&P 500's loss of 3.29% in that time.

Wells Fargo will be looking to display strength as it nears its next earnings release. On that day, Wells Fargo is projected to report earnings of $1.10 per share, which would represent a year-over-year decline of 5.98%. Meanwhile, our latest consensus estimate is calling for revenue of $18.71 billion, down 0.68% from the prior-year quarter.

WFC's full-year Zacks Consensus Estimates are calling for earnings of $3.99 per share and revenue of $72.96 billion. These results would represent year-over-year changes of -19.39% and -6.5%, respectively.

Investors might also notice 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 0.18% lower within the past month. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Wells Fargo's current valuation metrics, including its Forward P/E ratio of 10.91. Its industry sports an average Forward P/E of 9.8, 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 1.07. 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 was holding an average PEG ratio of 1.21 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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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