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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 $41.33 in the latest trading session, marking a +0.51% move from the prior day. The stock lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 14.24% over the past month. This has lagged the Finance sector's loss of 3.23% and the S&P 500's loss of 4.4% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. This is expected to be January 13, 2023. The company is expected to report EPS of $1.19, down 13.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.83 billion, down 4.92% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $3.61 per share and revenue of $74.04 billion. These results would represent year-over-year changes of -27.07% and -5.1%, respectively.
Investors should also note any recent changes to analyst estimates for Wells Fargo. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 4.62% lower. Wells Fargo currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 11.4. For comparison, its industry has an average Forward P/E of 9.99, which means Wells Fargo is trading at a premium to the group.
Investors should also note that WFC has a PEG ratio of 1.12 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. WFC's industry had an average PEG ratio of 1.3 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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) Gains But Lags Market: What You Should Know
Wells Fargo (WFC - Free Report) closed at $41.33 in the latest trading session, marking a +0.51% move from the prior day. The stock lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 14.24% over the past month. This has lagged the Finance sector's loss of 3.23% and the S&P 500's loss of 4.4% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. This is expected to be January 13, 2023. The company is expected to report EPS of $1.19, down 13.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.83 billion, down 4.92% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $3.61 per share and revenue of $74.04 billion. These results would represent year-over-year changes of -27.07% and -5.1%, respectively.
Investors should also note any recent changes to analyst estimates for Wells Fargo. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 4.62% lower. Wells Fargo currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 11.4. For comparison, its industry has an average Forward P/E of 9.99, which means Wells Fargo is trading at a premium to the group.
Investors should also note that WFC has a PEG ratio of 1.12 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. WFC's industry had an average PEG ratio of 1.3 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% 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.