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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 the most recent trading day at $51.33, moving +0.41% from the previous trading session. This change lagged the S&P 500's 1.43% gain on the day. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 0.32%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 5.25% over the past month, lagging the Finance sector's gain of 2.23% and the S&P 500's gain of 5.65% in that time.
Wells Fargo will be looking to display strength as it nears its next earnings release. In that report, analysts expect Wells Fargo to post earnings of $0.86 per share. This would mark a year-over-year decline of 18.1%. Meanwhile, our latest consensus estimate is calling for revenue of $17.92 billion, down 0.8% from the prior-year quarter.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $73.51 billion. These results would represent year-over-year changes of -19.19% and -5.78%, respectively.
Any recent changes to analyst estimates for Wells Fargo should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.17% higher within the past month. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 12.77. Its industry sports an average Forward P/E of 12.77, so we one might conclude that Wells Fargo is trading at a no noticeable deviation comparatively.
It is also worth noting that WFC currently has a PEG ratio of 1.25. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
Wells Fargo (WFC - Free Report) closed the most recent trading day at $51.33, moving +0.41% from the previous trading session. This change lagged the S&P 500's 1.43% gain on the day. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 0.32%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 5.25% over the past month, lagging the Finance sector's gain of 2.23% and the S&P 500's gain of 5.65% in that time.
Wells Fargo will be looking to display strength as it nears its next earnings release. In that report, analysts expect Wells Fargo to post earnings of $0.86 per share. This would mark a year-over-year decline of 18.1%. Meanwhile, our latest consensus estimate is calling for revenue of $17.92 billion, down 0.8% from the prior-year quarter.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $73.51 billion. These results would represent year-over-year changes of -19.19% and -5.78%, respectively.
Any recent changes to analyst estimates for Wells Fargo should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.17% higher within the past month. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 12.77. Its industry sports an average Forward P/E of 12.77, so we one might conclude that Wells Fargo is trading at a no noticeable deviation comparatively.
It is also worth noting that WFC currently has a PEG ratio of 1.25. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.