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Wells Fargo (WFC) Dips More Than Broader Markets: What You Should Know
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Wells Fargo (WFC - Free Report) closed at $42.89 in the latest trading session, marking a -1.36% move from the prior day. This change lagged the S&P 500's 0.79% loss on the day. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 3.35% in the past month. In that same time, the Finance sector gained 3.99%, while the S&P 500 gained 4.16%.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. This is expected to be July 14, 2023. On that day, Wells Fargo is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 56.76%. Meanwhile, our latest consensus estimate is calling for revenue of $20.28 billion, up 19.11% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.65 per share and revenue of $80.41 billion. These totals would mark changes of +48.09% and +8.97%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Wells Fargo. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.93% lower. Wells Fargo currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 9.36. This valuation marks a premium compared to its industry's average Forward P/E of 8.02.
Investors should also note that WFC has a PEG ratio of 0.92 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. 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 216, which puts it in the bottom 15% 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.
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Wells Fargo (WFC) Dips More Than Broader Markets: What You Should Know
Wells Fargo (WFC - Free Report) closed at $42.89 in the latest trading session, marking a -1.36% move from the prior day. This change lagged the S&P 500's 0.79% loss on the day. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 3.35% in the past month. In that same time, the Finance sector gained 3.99%, while the S&P 500 gained 4.16%.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. This is expected to be July 14, 2023. On that day, Wells Fargo is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 56.76%. Meanwhile, our latest consensus estimate is calling for revenue of $20.28 billion, up 19.11% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.65 per share and revenue of $80.41 billion. These totals would mark changes of +48.09% and +8.97%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Wells Fargo. These revisions help to show the ever-changing nature of near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.93% lower. Wells Fargo currently has a Zacks Rank of #4 (Sell).
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 9.36. This valuation marks a premium compared to its industry's average Forward P/E of 8.02.
Investors should also note that WFC has a PEG ratio of 0.92 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. 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 216, which puts it in the bottom 15% 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.