In the latest trading session, Wells Fargo (WFC - Free Report) closed at $50.26, marking a -1.62% move from the previous day. This change was narrower than the S&P 500's 2.33% loss on the day. Meanwhile, the Dow lost 2.24%, and the Nasdaq, a tech-heavy index, lost 3.05%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 3.89% over the past month, lagging the Finance sector's loss of 3% and the S&P 500's loss of 1.93% in that time.
Wall Street will be looking for positivity from WFC as it approaches its next earnings report date. This 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Any recent changes to analyst estimates for WFC should also be noted by investors. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. WFC is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note WFC's current valuation metrics, including its Forward P/E ratio of 11.93. For comparison, its industry has an average Forward P/E of 10.92, which means WFC is trading at a premium to the group.
Also, we should mention that WFC has a PEG ratio of 1.07. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Banks - Major Regional was holding an average PEG ratio of 1.13 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.