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Wells Fargo (WFC) Dips More Than Broader Markets: What You Should Know

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Wells Fargo (WFC - Free Report) closed the most recent trading day at $44.63, moving -1.85% from the previous trading session. This move lagged the S&P 500's daily loss of 1.08%. Elsewhere, the Dow lost 0.81%, while the tech-heavy Nasdaq added 0.22%.

Heading into today, shares of the biggest U.S. mortgage lender had gained 5.55% over the past month, outpacing the Finance sector's gain of 2.11% and the S&P 500's gain of 1.03% in that time.

Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release. In that report, analysts expect Wells Fargo to post earnings of $0.93 per share. This would mark a year-over-year decline of 32.61%. Meanwhile, our latest consensus estimate is calling for revenue of $17.89 billion, down 11.74% from the prior-year quarter.

WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $73.39 billion. These results would represent year-over-year changes of -16.36% and -5.94%, respectively.

Any recent changes to analyst estimates for Wells Fargo should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Wells Fargo currently has a Forward P/E ratio of 10.98. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.98.

Also, we should mention that WFC has a PEG ratio of 1.08. 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 1.55 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 98, which puts it in the top 39% 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.


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