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Wells Fargo (WFC) Ascends While Market Falls: Some Facts to Note
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Wells Fargo (WFC - Free Report) closed the latest trading day at $54.13, indicating a +0.5% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.13%.
Shares of the biggest U.S. mortgage lender have appreciated by 7.03% over the course of the past month, outperforming the Finance sector's gain of 3.85% and the S&P 500's gain of 4.74%.
The investment community will be paying close attention to the earnings performance of Wells Fargo in its upcoming release. The company's earnings per share (EPS) are projected to be $1.10, reflecting a 10.57% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $20.18 billion, showing a 2.67% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.72 per share and a revenue of $80.25 billion, signifying shifts of -13.08% and -2.84%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Wells Fargo. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Wells Fargo currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 11.4 right now. This signifies a premium in comparison to the average Forward P/E of 10.54 for its industry.
It is also worth noting that WFC currently has a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.52.
The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Wells Fargo (WFC) Ascends While Market Falls: Some Facts to Note
Wells Fargo (WFC - Free Report) closed the latest trading day at $54.13, indicating a +0.5% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.13%.
Shares of the biggest U.S. mortgage lender have appreciated by 7.03% over the course of the past month, outperforming the Finance sector's gain of 3.85% and the S&P 500's gain of 4.74%.
The investment community will be paying close attention to the earnings performance of Wells Fargo in its upcoming release. The company's earnings per share (EPS) are projected to be $1.10, reflecting a 10.57% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $20.18 billion, showing a 2.67% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.72 per share and a revenue of $80.25 billion, signifying shifts of -13.08% and -2.84%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Wells Fargo. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Wells Fargo currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 11.4 right now. This signifies a premium in comparison to the average Forward P/E of 10.54 for its industry.
It is also worth noting that WFC currently has a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.52.
The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.