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Wells Fargo (WFC) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, Wells Fargo (WFC - Free Report) closed at $49.92, marking a +1.3% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.18%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.1%.
Heading into today, shares of the biggest U.S. mortgage lender had gained 8.55% over the past month, outpacing the Finance sector's gain of 4.37% and the S&P 500's gain of 2.75% in that time.
The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. The company is scheduled to release its earnings on January 12, 2024. The company's upcoming EPS is projected at $1.15, signifying a 71.64% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $20.29 billion, up 3.2% from the year-ago period.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.68% higher. Wells Fargo presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Wells Fargo currently has a Forward P/E ratio of 10.15. For comparison, its industry has an average Forward P/E of 10.57, which means Wells Fargo is trading at a discount to the group.
We can additionally observe that WFC currently boasts a PEG ratio of 0.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.69 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 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Wells Fargo (WFC) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Wells Fargo (WFC - Free Report) closed at $49.92, marking a +1.3% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.18%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.1%.
Heading into today, shares of the biggest U.S. mortgage lender had gained 8.55% over the past month, outpacing the Finance sector's gain of 4.37% and the S&P 500's gain of 2.75% in that time.
The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. The company is scheduled to release its earnings on January 12, 2024. The company's upcoming EPS is projected at $1.15, signifying a 71.64% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $20.29 billion, up 3.2% from the year-ago period.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.68% higher. Wells Fargo presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Wells Fargo currently has a Forward P/E ratio of 10.15. For comparison, its industry has an average Forward P/E of 10.57, which means Wells Fargo is trading at a discount to the group.
We can additionally observe that WFC currently boasts a PEG ratio of 0.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.69 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 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.