In the latest trading session, Wells Fargo (WFC - Free Report) closed at $48.48, marking a -1.18% move from the previous day. This change was narrower than the S&P 500's 1.79% loss on the day. At the same time, the Dow lost 1.86%, and the tech-heavy Nasdaq lost 1.56%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 6.44% in the past month. In that same time, the Finance sector gained 2.11%, while the S&P 500 gained 0.72%.
Investors will be hoping for strength from WFC as it approaches its next earnings release, which is expected to be October 15, 2019. The company is expected to report EPS of $1.18, up 4.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.73 billion, down 5.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.77 per share and revenue of $83.49 billion. These totals would mark changes of +11.45% and -3.38%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for WFC. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.44% lower. WFC is currently a Zacks Rank #3 (Hold).
Investors should also note WFC's current valuation metrics, including its Forward P/E ratio of 10.28. This valuation marks a discount compared to its industry's average Forward P/E of 11.09.
Investors should also note that WFC has a PEG ratio of 0.96 right now. 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. WFC's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 28% 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.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.