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

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Wells Fargo (WFC - Free Report) closed at $44.33 in the latest trading session, marking a -0.07% move from the prior day. This change was narrower than the S&P 500's 0.77% loss on the day.

Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 13.28% over the past month. This has lagged the Finance sector's loss of 0.22% and the S&P 500's gain of 1.55% 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 $1.03 per share, which would represent year-over-year growth of 83.93%. Meanwhile, our latest consensus estimate is calling for revenue of $18.69 billion, down 0.9% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.37 per share and revenue of $74.98 billion, which would represent changes of +965.85% and +3.64%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for WFC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 1.21% higher. WFC currently has a Zacks Rank of #3 (Hold).

Digging into valuation, WFC currently has a Forward P/E ratio of 10.15. Its industry sports an average Forward P/E of 10.81, so we one might conclude that WFC is trading at a discount comparatively.

We can also see that WFC currently has a PEG ratio of 0.99. 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 1.22 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 111, putting it in the top 44% 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.

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