Wells Fargo (WFC) Stock Sinks As Market Gains: What You Should Know
Wells Fargo (WFC) closed at $36.23 in the latest trading session, marking a -1.04% move from the prior day. This move lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 1.35%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 20.84% over the past month, lagging the Finance sector's loss of 9.49% and the S&P 500's loss of 1.48% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. On that day, Wells Fargo is projected to report earnings of $1.19 per share, which would represent year-over-year growth of 35.23%. Our most recent consensus estimate is calling for quarterly revenue of $20.41 billion, up 16.02% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.81 per share and revenue of $80.26 billion. These results would represent year-over-year changes of +53.18% and +8.78%, respectively.
Investors might also notice recent changes to analyst estimates for Wells Fargo. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Wells Fargo currently has a Forward P/E ratio of 7.61. This represents a premium compared to its industry's average Forward P/E of 7.39.
It is also worth noting that WFC currently has a PEG ratio of 0.75. 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 1.04 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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