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Wells Fargo (WFC) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Wells Fargo (WFC - Free Report) closed at $52.43, marking a -0.21% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.92%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had gained 4.46% over the past month. This has outpaced the Finance sector's loss of 1.08% and the S&P 500's loss of 4.06% in that time.
Investors will be hoping for strength from WFC as it approaches its next earnings release, which is expected to be January 11, 2019. In that report, analysts expect WFC to post earnings of $1.19 per share. This would mark year-over-year growth of 22.68%. Our most recent consensus estimate is calling for quarterly revenue of $21.27 billion, down 3.53% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.28 per share and revenue of $86.12 billion. These results would represent year-over-year changes of +4.14% and -2.3%, respectively.
Investors should also note any recent changes to analyst estimates for WFC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. WFC currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that WFC has a Forward P/E ratio of 12.24 right now. Its industry sports an average Forward P/E of 11.31, so we one might conclude that WFC is trading at a premium comparatively.
It is also worth noting that WFC currently has a PEG ratio of 1.1. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% 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.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.
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Wells Fargo (WFC) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Wells Fargo (WFC - Free Report) closed at $52.43, marking a -0.21% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.92%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had gained 4.46% over the past month. This has outpaced the Finance sector's loss of 1.08% and the S&P 500's loss of 4.06% in that time.
Investors will be hoping for strength from WFC as it approaches its next earnings release, which is expected to be January 11, 2019. In that report, analysts expect WFC to post earnings of $1.19 per share. This would mark year-over-year growth of 22.68%. Our most recent consensus estimate is calling for quarterly revenue of $21.27 billion, down 3.53% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.28 per share and revenue of $86.12 billion. These results would represent year-over-year changes of +4.14% and -2.3%, respectively.
Investors should also note any recent changes to analyst estimates for WFC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. WFC currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that WFC has a Forward P/E ratio of 12.24 right now. Its industry sports an average Forward P/E of 11.31, so we one might conclude that WFC is trading at a premium comparatively.
It is also worth noting that WFC currently has a PEG ratio of 1.1. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% 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.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.