In the latest trading session, Wells Fargo (WFC - Free Report) closed at $54.34, marking a +0.98% move from the previous day. This move outpaced the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.66%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 3.14% in the past month. In that same time, the Finance sector gained 2.34%, while the S&P 500 gained 4.09%.
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 $1.09 per share. This would mark a year-over-year decline of 9.92%. Meanwhile, our latest consensus estimate is calling for revenue of $19.90 billion, down 5.16% from the prior-year quarter.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.50 per share and revenue of $83.56 billion. These results would represent year-over-year changes of +5.14% and -3.3%, respectively.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.04% lower within the past month. WFC is currently a Zacks Rank #3 (Hold).
In terms of valuation, WFC is currently trading at a Forward P/E ratio of 11.95. This valuation marks a discount compared to its industry's average Forward P/E of 12.33.
Investors should also note that WFC has a PEG ratio of 1.12 right now. 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 1.49 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 102, putting it in the top 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.