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Wells Fargo (WFC) Dips More Than Broader Market: What You Should Know
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Wells Fargo (WFC - Free Report) ended the recent trading session at $88.71, demonstrating a -1.75% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 0.56%.
Prior to today's trading, shares of the bank had gained 1.65% outpaced the Finance sector's loss of 0.73% and the S&P 500's loss of 0.82%.
The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.84, reflecting a 6.36% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $22.22 billion, reflecting a 3.64% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.25 per share and revenue of $88.61 billion, which would represent changes of +15.45% and +5.87%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 shifted 0.07% downward. Wells Fargo presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 12.46. For comparison, its industry has an average Forward P/E of 14.36, which means Wells Fargo is trading at a discount to the group.
Meanwhile, WFC's PEG ratio is currently 0.98. 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 of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.05.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Wells Fargo (WFC) Dips More Than Broader Market: What You Should Know
Wells Fargo (WFC - Free Report) ended the recent trading session at $88.71, demonstrating a -1.75% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.48% for the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 0.56%.
Prior to today's trading, shares of the bank had gained 1.65% outpaced the Finance sector's loss of 0.73% and the S&P 500's loss of 0.82%.
The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.84, reflecting a 6.36% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $22.22 billion, reflecting a 3.64% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.25 per share and revenue of $88.61 billion, which would represent changes of +15.45% and +5.87%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 shifted 0.07% downward. Wells Fargo presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 12.46. For comparison, its industry has an average Forward P/E of 14.36, which means Wells Fargo is trading at a discount to the group.
Meanwhile, WFC's PEG ratio is currently 0.98. 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 of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.05.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.