Back to top

Image: Bigstock

Wells Fargo (WFC) Stock Moves -0.07%: What You Should Know

Read MoreHide Full Article

In the latest trading session, Wells Fargo (WFC - Free Report) closed at $28.59, marking a -0.07% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq added 0.48%.

Heading into today, shares of the biggest U.S. mortgage lender had gained 31.12% over the past month, outpacing the Finance sector's gain of 10.49% and the S&P 500's gain of 5.06% in that time.

WFC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.59, down 36.56% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.93 billion, down 9.7% from the year-ago period.

WFC's full-year Zacks Consensus Estimates are calling for earnings of $0.40 per share and revenue of $72.31 billion. These results would represent year-over-year changes of -90.87% and -14.99%, respectively.

Investors should also note any recent changes to analyst estimates for WFC. 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.

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.

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. The Zacks Consensus EPS estimate has moved 5.32% higher within the past month. WFC currently has a Zacks Rank of #3 (Hold).

Digging into valuation, WFC currently has a Forward P/E ratio of 71.2. Its industry sports an average Forward P/E of 14.91, so we one might conclude that WFC is trading at a premium comparatively.

We can also see that WFC currently has a PEG ratio of 7.34. 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 2.06 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 126, putting it in the top 50% 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.

To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Wells Fargo & Company (WFC) - free report >>

Published in