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Wells Fargo (WFC) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Wells Fargo (WFC - Free Report) closed at $50.74, marking a +0.77% move from the previous day. This move outpaced the S&P 500's daily gain of 0.5%. At the same time, the Dow added 0.54%, and the tech-heavy Nasdaq gained 0.76%.

Coming into today, shares of the biggest U.S. mortgage lender had gained 3.77% in the past month. In that same time, the Finance sector gained 1.8%, while the S&P 500 gained 2.53%.

Wall Street will be looking for positivity from WFC as it approaches its next earnings report date. This is expected to be April 12, 2019. On that day, WFC is projected to report earnings of $1.09 per share, which would represent a year-over-year decline of 2.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.88 billion, down 4.8% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.96 per share and revenue of $85.01 billion. These totals would mark changes of +15.89% and -1.62%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for WFC. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. WFC currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, WFC is holding a Forward P/E ratio of 10.15. For comparison, its industry has an average Forward P/E of 10.94, which means WFC is trading at a discount to the group.

We can also see that WFC currently has a PEG ratio of 0.91. 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 1.32 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 44, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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