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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 at $45.39 in the latest trading session, marking a +1.68% move from the prior day. This change outpaced the S&P 500's 1.41% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had gained 2.13% over the past month. This has lagged the Finance sector's gain of 4.09% and the S&P 500's gain of 4.68% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. In that report, analysts expect Wells Fargo to post earnings of $1.11 per share. This would mark a year-over-year decline of 5.13%. Our most recent consensus estimate is calling for quarterly revenue of $18.71 billion, down 0.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4 per share and revenue of $72.91 billion, which would represent changes of -19.19% and -6.55%, respectively, from the prior year.
Any recent changes to analyst estimates for Wells Fargo should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Wells Fargo currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 11.17. For comparison, its industry has an average Forward P/E of 10.28, which means Wells Fargo is trading at a premium to the group.
It is also worth noting that WFC currently has a PEG ratio of 1.09. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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) Outpaces Stock Market Gains: What You Should Know
Wells Fargo (WFC - Free Report) closed at $45.39 in the latest trading session, marking a +1.68% move from the prior day. This change outpaced the S&P 500's 1.41% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had gained 2.13% over the past month. This has lagged the Finance sector's gain of 4.09% and the S&P 500's gain of 4.68% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. In that report, analysts expect Wells Fargo to post earnings of $1.11 per share. This would mark a year-over-year decline of 5.13%. Our most recent consensus estimate is calling for quarterly revenue of $18.71 billion, down 0.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4 per share and revenue of $72.91 billion, which would represent changes of -19.19% and -6.55%, respectively, from the prior year.
Any recent changes to analyst estimates for Wells Fargo should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Wells Fargo currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 11.17. For comparison, its industry has an average Forward P/E of 10.28, which means Wells Fargo is trading at a premium to the group.
It is also worth noting that WFC currently has a PEG ratio of 1.09. 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. The Banks - Major Regional industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.