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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
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In the latest trading session, Wells Fargo (WFC - Free Report) closed at $48.03, marking a +0.46% move from the previous day. The stock lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 6.98% over the past month. This has lagged the Finance sector's loss of 1.63% and the S&P 500's loss of 0.91% in that time.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release, which is expected to be January 14, 2022. On that day, Wells Fargo is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 73.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.34 billion, up 2.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.63 per share and revenue of $75.59 billion, which would represent changes of +1029.27% and +4.49%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Wells Fargo. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Wells Fargo is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 10.33. Its industry sports an average Forward P/E of 10.86, so we one might conclude that Wells Fargo is trading at a discount comparatively.
Investors should also note that WFC has a PEG ratio of 1.01 right now. 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. The Banks - Major Regional was holding an average PEG ratio of 1.28 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
In the latest trading session, Wells Fargo (WFC - Free Report) closed at $48.03, marking a +0.46% move from the previous day. The stock lagged the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, lost 0.4%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 6.98% over the past month. This has lagged the Finance sector's loss of 1.63% and the S&P 500's loss of 0.91% in that time.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release, which is expected to be January 14, 2022. On that day, Wells Fargo is projected to report earnings of $1.11 per share, which would represent year-over-year growth of 73.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.34 billion, up 2.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.63 per share and revenue of $75.59 billion, which would represent changes of +1029.27% and +4.49%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Wells Fargo. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Wells Fargo is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 10.33. Its industry sports an average Forward P/E of 10.86, so we one might conclude that Wells Fargo is trading at a discount comparatively.
Investors should also note that WFC has a PEG ratio of 1.01 right now. 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. The Banks - Major Regional was holding an average PEG ratio of 1.28 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.