We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Wells Fargo (WFC) Fell More Than Broader Market
Read MoreHide Full Article
Wells Fargo (WFC - Free Report) closed the latest trading day at $70.81, indicating a -1.63% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.39% for the day. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq decreased by 0.32%.
Shares of the biggest U.S. mortgage lender witnessed a loss of 2.85% over the previous month, trailing the performance of the Finance sector with its gain of 0.19% and the S&P 500's gain of 3.6%.
The investment community will be paying close attention to the earnings performance of Wells Fargo in its upcoming release. The company is predicted to post an EPS of $1.33, indicating a 3.1% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.5 billion, up 0.1% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.27 per share and revenue of $82.61 billion. These totals would mark changes of -2.95% and +0.02%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Wells Fargo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Wells Fargo currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Wells Fargo is presently being traded at a Forward P/E ratio of 13.66. This indicates a discount in contrast to its industry's Forward P/E of 17.23.
It is also worth noting that WFC currently has a PEG ratio of 1.55. 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. WFC's industry had an average PEG ratio of 1.48 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Wells Fargo (WFC) Fell More Than Broader Market
Wells Fargo (WFC - Free Report) closed the latest trading day at $70.81, indicating a -1.63% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.39% for the day. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq decreased by 0.32%.
Shares of the biggest U.S. mortgage lender witnessed a loss of 2.85% over the previous month, trailing the performance of the Finance sector with its gain of 0.19% and the S&P 500's gain of 3.6%.
The investment community will be paying close attention to the earnings performance of Wells Fargo in its upcoming release. The company is predicted to post an EPS of $1.33, indicating a 3.1% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.5 billion, up 0.1% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.27 per share and revenue of $82.61 billion. These totals would mark changes of -2.95% and +0.02%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Wells Fargo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Wells Fargo currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Wells Fargo is presently being traded at a Forward P/E ratio of 13.66. This indicates a discount in contrast to its industry's Forward P/E of 17.23.
It is also worth noting that WFC currently has a PEG ratio of 1.55. 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. WFC's industry had an average PEG ratio of 1.48 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.