Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Wells Fargo (WFC - Free Report) closed at $47.25, marking a -1.5% move from the previous day. This change lagged the S&P 500's daily gain of 0.13%.

Heading into today, shares of the biggest U.S. mortgage lender had gained 4.74% over the past month, outpacing the Finance sector's gain of 2.61% and the S&P 500's gain of 1.82% in that time.

Investors will be hoping for strength from WFC as it approaches its next earnings release. On that day, WFC is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 82.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.69 billion, down 0.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.37 per share and revenue of $74.06 billion, which would represent changes of +965.85% and +2.38%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for WFC. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 2.69% higher within the past month. WFC currently has a Zacks Rank of #3 (Hold).

Investors should also note WFC's current valuation metrics, including its Forward P/E ratio of 10.97. For comparison, its industry has an average Forward P/E of 10.97, which means WFC is trading at a no noticeable deviation to the group.

Also, we should mention that WFC has a PEG ratio of 1.07. 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 1.19 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 109, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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