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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 the most recent trading day at $49.54, moving -0.54% from the previous trading session. This move lagged the S&P 500's daily loss of 0.35%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq lost 0.39%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 0.62% over the past month, lagging the Finance sector's gain of 3.21% and the S&P 500's gain of 4.48% in that time.
Wall Street will be looking for positivity from WFC as it approaches its next earnings report date. In that report, analysts expect WFC to post earnings of $1.09 per share. This would mark a year-over-year decline of 2.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.88 billion, down 4.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $85.01 billion, which would represent changes of +15.89% and -1.62%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for WFC. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.76% higher. WFC currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that WFC has a Forward P/E ratio of 10.04 right now. This represents a discount compared to its industry's average Forward P/E of 10.97.
Also, we should mention that WFC has a PEG ratio of 0.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 37% 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.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.
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Wells Fargo (WFC) Dips More Than Broader Markets: What You Should Know
Wells Fargo (WFC - Free Report) closed the most recent trading day at $49.54, moving -0.54% from the previous trading session. This move lagged the S&P 500's daily loss of 0.35%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq lost 0.39%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 0.62% over the past month, lagging the Finance sector's gain of 3.21% and the S&P 500's gain of 4.48% in that time.
Wall Street will be looking for positivity from WFC as it approaches its next earnings report date. In that report, analysts expect WFC to post earnings of $1.09 per share. This would mark a year-over-year decline of 2.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.88 billion, down 4.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $85.01 billion, which would represent changes of +15.89% and -1.62%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for WFC. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.76% higher. WFC currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that WFC has a Forward P/E ratio of 10.04 right now. This represents a discount compared to its industry's average Forward P/E of 10.97.
Also, we should mention that WFC has a PEG ratio of 0.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 163, putting it in the bottom 37% 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.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.