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Wells Fargo (WFC) Advances But Underperforms Market: Key Facts
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In the latest market close, Wells Fargo (WFC - Free Report) reached $57.61, with a +0.91% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.12%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.54%.
The biggest U.S. mortgage lender's stock has climbed by 16.7% in the past month, exceeding the Finance sector's gain of 4.07% and the S&P 500's gain of 2.06%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. The company plans to announce its earnings on April 12, 2024. The company's earnings per share (EPS) are projected to be $1.10, reflecting a 10.57% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $20.18 billion, reflecting a 2.67% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.72 per share and a revenue of $80.25 billion, demonstrating changes of -13.08% and -2.84%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. At present, Wells Fargo boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Wells Fargo is at present trading with a Forward P/E ratio of 12.09. This signifies a premium in comparison to the average Forward P/E of 11.11 for its industry.
Investors should also note that WFC has a PEG ratio of 1.18 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Banks - Major Regional industry held an average PEG ratio of 1.58.
The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Advances But Underperforms Market: Key Facts
In the latest market close, Wells Fargo (WFC - Free Report) reached $57.61, with a +0.91% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.12%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.54%.
The biggest U.S. mortgage lender's stock has climbed by 16.7% in the past month, exceeding the Finance sector's gain of 4.07% and the S&P 500's gain of 2.06%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. The company plans to announce its earnings on April 12, 2024. The company's earnings per share (EPS) are projected to be $1.10, reflecting a 10.57% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $20.18 billion, reflecting a 2.67% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.72 per share and a revenue of $80.25 billion, demonstrating changes of -13.08% and -2.84%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. At present, Wells Fargo boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Wells Fargo is at present trading with a Forward P/E ratio of 12.09. This signifies a premium in comparison to the average Forward P/E of 11.11 for its industry.
Investors should also note that WFC has a PEG ratio of 1.18 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Banks - Major Regional industry held an average PEG ratio of 1.58.
The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.