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Wells Fargo (WFC) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Wells Fargo (WFC - Free Report) closed at $43.70, marking a -0.02% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 0.41% in the past month. In that same time, the Finance sector lost 1.92%, while the S&P 500 lost 4.13%.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release. The company is expected to report EPS of $1.11, down 5.13% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.71 billion, down 0.67% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4 per share and revenue of $72.91 billion. These results would represent year-over-year changes of -19.19% and -6.55%, respectively.
Investors might also notice recent changes to analyst estimates for Wells Fargo. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 10.94. For comparison, its industry has an average Forward P/E of 10.02, which means Wells Fargo is trading at a premium to the group.
We can also see that WFC currently has a PEG ratio of 1.07. 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 was holding an average PEG ratio of 1.28 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.