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Wells Fargo (WFC) Outpaces Stock Market Gains: What You Should Know
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Wells Fargo (WFC - Free Report) closed at $40.98 in the latest trading session, marking a +0.74% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.45%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 14.05% in the past month. In that same time, the Finance sector lost 3.84%, while the S&P 500 lost 4.33%.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release, which is expected to be January 13, 2023. In that report, analysts expect Wells Fargo to post earnings of $1.19 per share. This would mark a year-over-year decline of 13.77%. Meanwhile, our latest consensus estimate is calling for revenue of $19.83 billion, down 4.92% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.61 per share and revenue of $74.04 billion. These totals would mark changes of -27.07% and -5.1%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 4.62% lower within the past month. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 11.28. This valuation marks a premium compared to its industry's average Forward P/E of 10.07.
We can also see that WFC currently has a PEG ratio of 1.11. 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 1.24 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 144, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 (WFC) Outpaces Stock Market Gains: What You Should Know
Wells Fargo (WFC - Free Report) closed at $40.98 in the latest trading session, marking a +0.74% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.45%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 14.05% in the past month. In that same time, the Finance sector lost 3.84%, while the S&P 500 lost 4.33%.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release, which is expected to be January 13, 2023. In that report, analysts expect Wells Fargo to post earnings of $1.19 per share. This would mark a year-over-year decline of 13.77%. Meanwhile, our latest consensus estimate is calling for revenue of $19.83 billion, down 4.92% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.61 per share and revenue of $74.04 billion. These totals would mark changes of -27.07% and -5.1%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 4.62% lower within the past month. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 11.28. This valuation marks a premium compared to its industry's average Forward P/E of 10.07.
We can also see that WFC currently has a PEG ratio of 1.11. 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 1.24 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 144, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.