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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 $40.45, moving -1.92% from the previous trading session. This change lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 8.7% in the past month. In that same time, the Finance sector gained 2.29%, while the S&P 500 gained 4.14%.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release, which is expected to be July 14, 2023. The company is expected to report EPS of $1.27, up 71.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.21 billion, up 18.67% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.79 per share and revenue of $80.31 billion. These results would represent year-over-year changes of +52.55% and +8.84%, respectively.
Investors should also note any recent changes to analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 has moved 0.04% lower within the past month. Wells Fargo is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 8.62 right now. Its industry sports an average Forward P/E of 7.64, so we one might conclude that Wells Fargo is trading at a premium comparatively.
Meanwhile, WFC's PEG ratio is currently 0.84. 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 1.16 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Wells Fargo (WFC) Dips More Than Broader Markets: What You Should Know
Wells Fargo (WFC - Free Report) closed the most recent trading day at $40.45, moving -1.92% from the previous trading session. This change lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 8.7% in the past month. In that same time, the Finance sector gained 2.29%, while the S&P 500 gained 4.14%.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release, which is expected to be July 14, 2023. The company is expected to report EPS of $1.27, up 71.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.21 billion, up 18.67% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.79 per share and revenue of $80.31 billion. These results would represent year-over-year changes of +52.55% and +8.84%, respectively.
Investors should also note any recent changes to analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 has moved 0.04% lower within the past month. Wells Fargo is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 8.62 right now. Its industry sports an average Forward P/E of 7.64, so we one might conclude that Wells Fargo is trading at a premium comparatively.
Meanwhile, WFC's PEG ratio is currently 0.84. 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 1.16 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.