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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
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Wells Fargo (WFC - Free Report) closed the most recent trading day at $25.70, moving +1.42% from the previous trading session. This change lagged the S&P 500's 1.47% gain on the day. Elsewhere, the Dow gained 2.32%, while the tech-heavy Nasdaq added 1.2%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 6.91% in the past month. In that same time, the Finance sector gained 0.41%, while the S&P 500 gained 0.74%.
Investors will be hoping for strength from WFC as it approaches its next earnings release, which is expected to be July 14, 2020. The company is expected to report EPS of $0.14, down 89.23% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.34 billion, down 15.02% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $73.57 billion. These results would represent year-over-year changes of -83.56% and -13.51%, respectively.
Investors should also note any 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.
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, 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 8.35% lower. WFC currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, WFC is holding a Forward P/E ratio of 35.15. Its industry sports an average Forward P/E of 16.36, so we one might conclude that WFC is trading at a premium comparatively.
Also, we should mention that WFC has a PEG ratio of 3.44. 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. The Banks - Major Regional was holding an average PEG ratio of 2.59 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% 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.
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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
Wells Fargo (WFC - Free Report) closed the most recent trading day at $25.70, moving +1.42% from the previous trading session. This change lagged the S&P 500's 1.47% gain on the day. Elsewhere, the Dow gained 2.32%, while the tech-heavy Nasdaq added 1.2%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 6.91% in the past month. In that same time, the Finance sector gained 0.41%, while the S&P 500 gained 0.74%.
Investors will be hoping for strength from WFC as it approaches its next earnings release, which is expected to be July 14, 2020. The company is expected to report EPS of $0.14, down 89.23% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.34 billion, down 15.02% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $0.72 per share and revenue of $73.57 billion. These results would represent year-over-year changes of -83.56% and -13.51%, respectively.
Investors should also note any 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.
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, 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 8.35% lower. WFC currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, WFC is holding a Forward P/E ratio of 35.15. Its industry sports an average Forward P/E of 16.36, so we one might conclude that WFC is trading at a premium comparatively.
Also, we should mention that WFC has a PEG ratio of 3.44. 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. The Banks - Major Regional was holding an average PEG ratio of 2.59 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% 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.