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Wells Fargo (WFC) Registers a Bigger Fall Than the Market: Important Facts to Note
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Wells Fargo (WFC - Free Report) ended the recent trading session at $72.05, demonstrating a -0.78% swing from the preceding day's closing price. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the biggest U.S. mortgage lender had gained 0.08% over the past month, lagging the Finance sector's gain of 0.93% and the S&P 500's gain of 1.09% in that time.
The upcoming earnings release of Wells Fargo will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.32, reflecting a 2.33% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.43 billion, down 0.25% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $82.65 billion, which would represent changes of -2.95% and +0.06%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wells Fargo. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.77% rise in the Zacks Consensus EPS estimate. Wells Fargo is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 13.79. This signifies a discount in comparison to the average Forward P/E of 17.4 for its industry.
We can also see that WFC currently has a PEG ratio of 1.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.48.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Wells Fargo (WFC) Registers a Bigger Fall Than the Market: Important Facts to Note
Wells Fargo (WFC - Free Report) ended the recent trading session at $72.05, demonstrating a -0.78% swing from the preceding day's closing price. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the biggest U.S. mortgage lender had gained 0.08% over the past month, lagging the Finance sector's gain of 0.93% and the S&P 500's gain of 1.09% in that time.
The upcoming earnings release of Wells Fargo will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.32, reflecting a 2.33% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.43 billion, down 0.25% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $82.65 billion, which would represent changes of -2.95% and +0.06%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wells Fargo. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.77% rise in the Zacks Consensus EPS estimate. Wells Fargo is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 13.79. This signifies a discount in comparison to the average Forward P/E of 17.4 for its industry.
We can also see that WFC currently has a PEG ratio of 1.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.48.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.