Back to top

Image: Bigstock

Wells Fargo (WFC) Stock Moves -0.27%: What You Should Know

Read MoreHide Full Article

The most recent trading session ended with Wells Fargo (WFC - Free Report) standing at $51.77, reflecting a -0.27% shift from the previouse trading day's closing. This change was narrower than the S&P 500's 0.6% loss on the day. On the other hand, the Dow registered a loss of 0.17%, and the technology-centric Nasdaq decreased by 0.92%.

The biggest U.S. mortgage lender's shares have seen an increase of 6.96% over the last month, surpassing the Finance sector's gain of 3.63% and the S&P 500's gain of 3.56%.

The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.10, marking a 10.57% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.18 billion, down 2.67% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.72 per share and a revenue of $80.25 billion, indicating changes of -13.08% and -2.84%, respectively, from the former year.

Any recent changes to analyst estimates for Wells Fargo should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Wells Fargo is currently a Zacks Rank #3 (Hold).

Looking at valuation, Wells Fargo is presently trading at a Forward P/E ratio of 11. This represents a premium compared to its industry's average Forward P/E of 10.66.

We can additionally observe that WFC currently boasts a PEG ratio of 1.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Banks - Major Regional industry was having an average PEG ratio of 1.51.

The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Wells Fargo & Company (WFC) - free report >>

Published in