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Wells Fargo (WFC) Gains But Lags Market: What You Should Know
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Wells Fargo (WFC - Free Report) closed at $42.86 in the latest trading session, marking a +0.85% move from the prior day. The stock lagged the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, added 0.03%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 10.62% over the past month. This has lagged the Finance sector's gain of 3.47% and the S&P 500's gain of 5.12% in that time.
Wells Fargo will be looking to display strength as it nears its next earnings release, which is expected to be January 13, 2023. The company is expected to report EPS of $1.26, down 8.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.89 billion, down 4.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.77 per share and revenue of $74.04 billion, which would represent changes of -23.84% and -5.11%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Wells Fargo. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.29% lower. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 11.27. This represents a premium compared to its industry's average Forward P/E of 10.17.
We can also see that WFC currently has a PEG ratio of 1.1. 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 industry currently had an average PEG ratio of 1.26 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% 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.
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
Wells Fargo (WFC - Free Report) closed at $42.86 in the latest trading session, marking a +0.85% move from the prior day. The stock lagged the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, added 0.03%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 10.62% over the past month. This has lagged the Finance sector's gain of 3.47% and the S&P 500's gain of 5.12% in that time.
Wells Fargo will be looking to display strength as it nears its next earnings release, which is expected to be January 13, 2023. The company is expected to report EPS of $1.26, down 8.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.89 billion, down 4.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.77 per share and revenue of $74.04 billion, which would represent changes of -23.84% and -5.11%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Wells Fargo. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.29% lower. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 11.27. This represents a premium compared to its industry's average Forward P/E of 10.17.
We can also see that WFC currently has a PEG ratio of 1.1. 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 industry currently had an average PEG ratio of 1.26 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.