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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
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Wells Fargo (WFC - Free Report) closed at $48.94 in the latest trading session, marking a +0.1% move from the prior day. The stock lagged the S&P 500's daily gain of 1.64%. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 0.45%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 2.94% over the past month. This has was narrower than the Finance sector's loss of 3.51% and lagged the S&P 500's loss of 0.83% in that time.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release. On that day, Wells Fargo is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 73.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.34 billion, up 2.33% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.63 per share and revenue of $75.59 billion. These results would represent year-over-year changes of +1029.27% and +4.49%, respectively.
Investors might also notice recent changes to analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 10.56 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.9.
Also, we should mention that WFC has a PEG ratio of 1.03. 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. The Banks - Major Regional was holding an average PEG ratio of 1.31 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
Wells Fargo (WFC - Free Report) closed at $48.94 in the latest trading session, marking a +0.1% move from the prior day. The stock lagged the S&P 500's daily gain of 1.64%. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 0.45%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 2.94% over the past month. This has was narrower than the Finance sector's loss of 3.51% and lagged the S&P 500's loss of 0.83% in that time.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release. On that day, Wells Fargo is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 73.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.34 billion, up 2.33% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.63 per share and revenue of $75.59 billion. These results would represent year-over-year changes of +1029.27% and +4.49%, respectively.
Investors might also notice recent changes to analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.24% higher. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 10.56 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.9.
Also, we should mention that WFC has a PEG ratio of 1.03. 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. The Banks - Major Regional was holding an average PEG ratio of 1.31 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.