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Wells Fargo (WFC) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Wells Fargo (WFC - Free Report) closed at $46.81, marking a -0.95% move from the previous day. This change lagged the S&P 500's 0.15% gain on the day.

Heading into today, shares of the biggest U.S. mortgage lender had gained 3.32% over the past month, lagging the Finance sector's gain of 4.29% and outpacing the S&P 500's gain of 0.58% in that time.

WFC will be looking to display strength as it nears its next earnings release. On that day, WFC is projected to report earnings of $0.90 per share, which would represent year-over-year growth of 236.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.71 billion, down 0.69% from the year-ago period.

WFC's full-year Zacks Consensus Estimates are calling for earnings of $3.72 per share and revenue of $71.06 billion. These results would represent year-over-year changes of +807.32% and -1.77%, respectively.

Investors should also note any recent changes to analyst estimates for WFC. These recent revisions tend to reflect the evolving nature of short-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. 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 2.11% higher. WFC is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that WFC has a Forward P/E ratio of 12.7 right now. This valuation marks a discount compared to its industry's average Forward P/E of 12.75.

Meanwhile, WFC's PEG ratio is currently 1.31. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.52 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 98, putting it in the top 39% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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