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Wells Fargo (WFC) Outpaces Stock Market Gains: What You Should Know
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Wells Fargo (WFC - Free Report) closed the most recent trading day at $24.45, moving +1.92% from the previous trading session. This change outpaced the S&P 500's 1.8% gain on the day. At the same time, the Dow added 1.68%, and the tech-heavy Nasdaq gained 2.33%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 2.16% over the past month. This has was narrower than the Finance sector's loss of 4.03% and the S&P 500's loss of 6.31% in that time.
Investors will be hoping for strength from WFC as it approaches its next earnings release, which is expected to be October 14, 2020. In that report, analysts expect WFC to post earnings of $0.40 per share. This would mark a year-over-year decline of 56.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.79 billion, down 19.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.11 per share and revenue of $71.36 billion. These totals would mark changes of -97.49% and -16.11%, respectively, from last year.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 300% higher. WFC is currently a Zacks Rank #4 (Sell).
Looking at its valuation, WFC is holding a Forward P/E ratio of 219.76. Its industry sports an average Forward P/E of 13.33, so we one might conclude that WFC is trading at a premium comparatively.
Meanwhile, WFC's PEG ratio is currently 22.64. 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 2.12 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 201, putting it in the bottom 21% 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.
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) Outpaces Stock Market Gains: What You Should Know
Wells Fargo (WFC - Free Report) closed the most recent trading day at $24.45, moving +1.92% from the previous trading session. This change outpaced the S&P 500's 1.8% gain on the day. At the same time, the Dow added 1.68%, and the tech-heavy Nasdaq gained 2.33%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 2.16% over the past month. This has was narrower than the Finance sector's loss of 4.03% and the S&P 500's loss of 6.31% in that time.
Investors will be hoping for strength from WFC as it approaches its next earnings release, which is expected to be October 14, 2020. In that report, analysts expect WFC to post earnings of $0.40 per share. This would mark a year-over-year decline of 56.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.79 billion, down 19.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.11 per share and revenue of $71.36 billion. These totals would mark changes of -97.49% and -16.11%, respectively, from last year.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 300% higher. WFC is currently a Zacks Rank #4 (Sell).
Looking at its valuation, WFC is holding a Forward P/E ratio of 219.76. Its industry sports an average Forward P/E of 13.33, so we one might conclude that WFC is trading at a premium comparatively.
Meanwhile, WFC's PEG ratio is currently 22.64. 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 2.12 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 201, putting it in the bottom 21% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.