In the latest trading session, Wells Fargo (WFC - Free Report) closed at $24.52, marking a -0.2% move from the previous day. This change was narrower than the S&P 500's daily loss of 3.51%. Meanwhile, the Dow lost 2.78%, and the Nasdaq, a tech-heavy index, lost 4.96%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had gained 0.7% over the past month. This has lagged the Finance sector's gain of 5.81% and the S&P 500's gain of 9.58% in that time.
Wall Street will be looking for positivity from WFC as it approaches its next earnings report date. The company is expected to report EPS of $0.36, down 60.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.85 billion, down 18.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $71.58 billion, which would represent changes of -99.54% and -15.86%, respectively, from the prior year.
Any recent changes to analyst estimates for WFC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 47.62% lower. WFC is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, WFC is holding a Forward P/E ratio of 1228.5. This valuation marks a premium compared to its industry's average Forward P/E of 14.52.
Also, we should mention that WFC has a PEG ratio of 126.58. 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 2.29 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 16% 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.