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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 $42.80, moving +0.9% from the previous trading session. This change lagged the S&P 500's 2.28% gain on the day. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 5.02%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 0.38% over the past month. This has was narrower than the Finance sector's loss of 1.02% and the S&P 500's loss of 4.61% in that time.
Wells Fargo will be looking to display strength as it nears its next earnings release, which is expected to be January 13, 2023. In that report, analysts expect Wells Fargo to post earnings of $0.64 per share. This would mark a year-over-year decline of 53.62%. Our most recent consensus estimate is calling for quarterly revenue of $19.79 billion, down 5.13% from the year-ago period.
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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. 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 8.38. Its industry sports an average Forward P/E of 8.74, so we one might conclude that Wells Fargo is trading at a discount comparatively.
It is also worth noting that WFC currently has a PEG ratio of 0.82. 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. WFC's industry had an average PEG ratio of 1.28 as of yesterday's close.
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 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.
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 $42.80, moving +0.9% from the previous trading session. This change lagged the S&P 500's 2.28% gain on the day. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 5.02%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 0.38% over the past month. This has was narrower than the Finance sector's loss of 1.02% and the S&P 500's loss of 4.61% in that time.
Wells Fargo will be looking to display strength as it nears its next earnings release, which is expected to be January 13, 2023. In that report, analysts expect Wells Fargo to post earnings of $0.64 per share. This would mark a year-over-year decline of 53.62%. Our most recent consensus estimate is calling for quarterly revenue of $19.79 billion, down 5.13% from the year-ago period.
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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. 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 8.38. Its industry sports an average Forward P/E of 8.74, so we one might conclude that Wells Fargo is trading at a discount comparatively.
It is also worth noting that WFC currently has a PEG ratio of 0.82. 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. WFC's industry had an average PEG ratio of 1.28 as of yesterday's close.
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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.