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Why Wells Fargo (WFC) Outpaced the Stock Market Today
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Wells Fargo (WFC - Free Report) closed at $79.10 in the latest trading session, marking a +1.63% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.52%. Elsewhere, the Dow saw an upswing of 1.89%, while the tech-heavy Nasdaq appreciated by 1.88%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 7.2% in the past month. In that same time, the Finance sector gained 1.71%, while the S&P 500 gained 1.1%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. The company's upcoming EPS is projected at $1.53, signifying a 0.66% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $21.15 billion, indicating a 3.86% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.01 per share and revenue of $83.38 billion, indicating changes of +11.92% and +1.32%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Wells Fargo presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Wells Fargo is currently being traded at a Forward P/E ratio of 12.95. This denotes a discount relative to the industry average Forward P/E of 16.27.
One should further note that WFC currently holds a PEG ratio of 1.18. 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 the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.52.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 7, placing it within the top 3% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why Wells Fargo (WFC) Outpaced the Stock Market Today
Wells Fargo (WFC - Free Report) closed at $79.10 in the latest trading session, marking a +1.63% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.52%. Elsewhere, the Dow saw an upswing of 1.89%, while the tech-heavy Nasdaq appreciated by 1.88%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 7.2% in the past month. In that same time, the Finance sector gained 1.71%, while the S&P 500 gained 1.1%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. The company's upcoming EPS is projected at $1.53, signifying a 0.66% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $21.15 billion, indicating a 3.86% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.01 per share and revenue of $83.38 billion, indicating changes of +11.92% and +1.32%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Wells Fargo presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Wells Fargo is currently being traded at a Forward P/E ratio of 12.95. This denotes a discount relative to the industry average Forward P/E of 16.27.
One should further note that WFC currently holds a PEG ratio of 1.18. 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 the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.52.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 7, placing it within the top 3% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.