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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 $41.61, moving +0.27% from the previous trading session. This change lagged the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.59%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 8.75% in the past month. In that same time, the Finance sector lost 4.44%, while the S&P 500 lost 3.13%.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. On that day, Wells Fargo is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 4.62%. Our most recent consensus estimate is calling for quarterly revenue of $20.23 billion, up 3.72% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.86 per share and revenue of $81.31 billion. These results would represent year-over-year changes of +54.78% and +10.2%, respectively.
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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.16% higher. Wells Fargo is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 8.53 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.53.
Also, we should mention that WFC has a PEG ratio of 0.84. 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 was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% 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.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.
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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 $41.61, moving +0.27% from the previous trading session. This change lagged the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.59%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 8.75% in the past month. In that same time, the Finance sector lost 4.44%, while the S&P 500 lost 3.13%.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. On that day, Wells Fargo is projected to report earnings of $1.24 per share, which would represent a year-over-year decline of 4.62%. Our most recent consensus estimate is calling for quarterly revenue of $20.23 billion, up 3.72% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.86 per share and revenue of $81.31 billion. These results would represent year-over-year changes of +54.78% and +10.2%, respectively.
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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.16% higher. Wells Fargo is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 8.53 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.53.
Also, we should mention that WFC has a PEG ratio of 0.84. 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 was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% 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.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.