In the latest trading session, Wells Fargo (WFC - Free Report) closed at $52.81, marking a +0.28% move from the previous day. This change lagged the S&P 500's 0.49% gain on the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.67%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 1.92% in the past month. In that same time, the Finance sector gained 1.73%, while the S&P 500 gained 3.03%.
Investors will be hoping for strength from WFC as it approaches its next earnings release, which is expected to be January 14, 2020. The company is expected to report EPS of $1.11, down 8.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.88 billion, down 5.26% from the year-ago period.
Investors might also notice recent changes to analyst estimates for WFC. These recent revisions tend to reflect the evolving nature of short-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. 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.
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 0.12% higher within the past month. WFC is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that WFC has a Forward P/E ratio of 12.34 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.3.
Also, we should mention that WFC has a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.45 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 30, which puts it in the top 12% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.