Wells Fargo (WFC - Free Report) closed the most recent trading day at $48.65, moving -0.63% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 1.47%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 8.85% in the past month. In that same time, the Finance sector gained 6.7%, while the S&P 500 gained 5.2%.
Investors will be hoping for strength from WFC as it approaches its next earnings release. In that report, analysts expect WFC to post earnings of $1.18 per share. This would mark year-over-year growth of 4.42%. Our most recent consensus estimate is calling for quarterly revenue of $20.73 billion, down 5.53% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.78 per share and revenue of $83.39 billion, which would represent changes of +11.68% and -3.5%, respectively, from the prior year.
Any recent changes to analyst estimates for WFC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.39% lower. WFC is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, WFC is currently trading at a Forward P/E ratio of 10.25. This valuation marks a discount compared to its industry's average Forward P/E of 11.47.
We can also see that WFC currently has a PEG ratio of 0.96. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 26% 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.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.