We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wells Fargo (WFC) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Wells Fargo (WFC - Free Report) closed the most recent trading day at $38.17, moving +1.98% from the previous trading session. This change outpaced the S&P 500's 1.46% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 0.17%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 14.37% over the past month. This has lagged the Finance sector's loss of 6.38% and the S&P 500's loss of 6.94% in that time.
Wells Fargo will be looking to display strength as it nears its next earnings release. On that day, Wells Fargo is projected to report earnings of $0.93 per share, which would represent a year-over-year decline of 32.61%. Meanwhile, our latest consensus estimate is calling for revenue of $17.87 billion, down 11.83% from the prior-year quarter.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.13 per share and revenue of $73.38 billion. These results would represent year-over-year changes of -16.57% and -5.95%, respectively.
Investors should also note any recent changes to analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Wells Fargo currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 9.06 right now. Its industry sports an average Forward P/E of 9.47, so we one might conclude that Wells Fargo is trading at a discount comparatively.
Investors should also note that WFC has a PEG ratio of 0.89 right now. 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 industry currently had an average PEG ratio of 1.34 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Wells Fargo (WFC) Outpaces Stock Market Gains: What You Should Know
Wells Fargo (WFC - Free Report) closed the most recent trading day at $38.17, moving +1.98% from the previous trading session. This change outpaced the S&P 500's 1.46% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 0.17%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 14.37% over the past month. This has lagged the Finance sector's loss of 6.38% and the S&P 500's loss of 6.94% in that time.
Wells Fargo will be looking to display strength as it nears its next earnings release. On that day, Wells Fargo is projected to report earnings of $0.93 per share, which would represent a year-over-year decline of 32.61%. Meanwhile, our latest consensus estimate is calling for revenue of $17.87 billion, down 11.83% from the prior-year quarter.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.13 per share and revenue of $73.38 billion. These results would represent year-over-year changes of -16.57% and -5.95%, respectively.
Investors should also note any recent changes to analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Wells Fargo currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 9.06 right now. Its industry sports an average Forward P/E of 9.47, so we one might conclude that Wells Fargo is trading at a discount comparatively.
Investors should also note that WFC has a PEG ratio of 0.89 right now. 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 industry currently had an average PEG ratio of 1.34 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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.