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Wells Fargo (WFC) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Wells Fargo (WFC - Free Report) ended the recent trading session at $94.29, demonstrating a -2.18% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, added 0.16%.

The biggest U.S. mortgage lender's stock has climbed by 8.44% in the past month, exceeding the Finance sector's gain of 3.09% and the S&P 500's gain of 1.19%.

Analysts and investors alike will be keeping a close eye on the performance of Wells Fargo in its upcoming earnings disclosure. The company's earnings report is set to go public on January 14, 2026. The company is expected to report EPS of $1.65, up 16.2% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $21.57 billion, indicating a 5.85% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.28 per share and revenue of $83.99 billion. These totals would mark changes of +16.95% and 0%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.85% higher. 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 13.74. This denotes a discount relative to the industry average Forward P/E of 16.75.

One should further note that WFC currently holds a PEG ratio of 0.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 1.1 as trading concluded yesterday.

The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 103, finds itself in the top 43% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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