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Wells Fargo (WFC) Stock Moves -0.17%: What You Should Know

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Wells Fargo (WFC - Free Report) ended the recent trading session at $58.37, demonstrating a -0.17% swing from the preceding day's closing price. This change was narrower than the S&P 500's 2.12% loss on the day. Meanwhile, the Dow lost 1.51%, and the Nasdaq, a tech-heavy index, lost 3.26%.

The biggest U.S. mortgage lender's shares have seen an increase of 12.18% over the last month, surpassing the Finance sector's gain of 7.46% and the S&P 500's gain of 5.78%.

Analysts and investors alike will be keeping a close eye on the performance of Wells Fargo in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.27, marking an 8.63% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $20.4 billion, showing a 2.2% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.10 per share and a revenue of $82.29 billion, demonstrating changes of -6.08% and -0.38%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Wells Fargo is presently trading at a Forward P/E ratio of 11.47. Its industry sports an average Forward P/E of 12.44, so one might conclude that Wells Fargo is trading at a discount comparatively.

It is also worth noting that WFC currently has a PEG ratio of 1.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Banks - Major Regional industry held an average PEG ratio of 1.53.

The Banks - Major Regional industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 21, finds itself in the top 9% echelons of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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