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

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Wells Fargo (WFC - Free Report) closed at $47.80 in the latest trading session, marking a +1.53% move from the prior day. This move outpaced the S&P 500's daily gain of 1.21%.

Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 4.48% over the past month. This has lagged the Finance sector's loss of 1.07% and the S&P 500's loss of 0.9% in that time.

WFC will be looking to display strength as it nears its next earnings release. In that report, analysts expect WFC to post earnings of $1.03 per share. This would mark 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.

WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.37 per share and revenue of $74.98 billion. These results would represent year-over-year changes of +965.85% and +3.64%, respectively.

Any recent changes to analyst estimates for WFC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. WFC is currently a Zacks Rank #3 (Hold).

Investors should also note WFC's current valuation metrics, including its Forward P/E ratio of 10.77. This represents a no noticeable deviation compared to its industry's average Forward P/E of 10.77.

Investors should also note that WFC has a PEG ratio of 1.06 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WFC's industry had an average PEG ratio of 1.21 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 46% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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