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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 the most recent trading day at $48.36, moving +0.69% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 6.39% over the past month. This has lagged the Finance sector's loss of 1.19% and the S&P 500's gain of 0.39% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. This is expected to be January 14, 2022. 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%. Our most recent consensus estimate is calling for quarterly revenue of $18.41 billion, up 2.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.64 per share and revenue of $75.63 billion. These totals would mark changes of +1031.71% and +4.55%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-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 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. Within the past 30 days, our consensus EPS projection has moved 0.31% higher. Wells Fargo is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 10.34. This represents 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 1.01. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.28 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
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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Wells Fargo (WFC) Outpaces Stock Market Gains: What You Should Know
Wells Fargo (WFC - Free Report) closed the most recent trading day at $48.36, moving +0.69% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 6.39% over the past month. This has lagged the Finance sector's loss of 1.19% and the S&P 500's gain of 0.39% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. This is expected to be January 14, 2022. 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%. Our most recent consensus estimate is calling for quarterly revenue of $18.41 billion, up 2.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.64 per share and revenue of $75.63 billion. These totals would mark changes of +1031.71% and +4.55%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-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 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. Within the past 30 days, our consensus EPS projection has moved 0.31% higher. Wells Fargo is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 10.34. This represents 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 1.01. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.28 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.