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Wells Fargo (WFC) Gains As Market Dips: What You Should Know
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In the latest trading session, Wells Fargo (WFC - Free Report) closed at $43.02, marking a +0.23% move from the previous day. This move outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.07%.
The the stock of biggest U.S. mortgage lender has risen by 10.73% in the past month, leading the Finance sector's gain of 9.07% and the S&P 500's gain of 7.49%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. On that day, Wells Fargo is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 85.07%. At the same time, our most recent consensus estimate is projecting a revenue of $20.25 billion, reflecting a 3.01% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.24 per share and revenue of $82.32 billion. These totals would mark changes of +66.88% and +11.56%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Wells Fargo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% higher. Currently, Wells Fargo is carrying a Zacks Rank of #3 (Hold).
Investors should also note Wells Fargo's current valuation metrics, including its Forward P/E ratio of 8.2. For comparison, its industry has an average Forward P/E of 8.66, which means Wells Fargo is trading at a discount to the group.
It is also worth noting that WFC currently has a PEG ratio of 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. WFC's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Wells Fargo (WFC) Gains As Market Dips: What You Should Know
In the latest trading session, Wells Fargo (WFC - Free Report) closed at $43.02, marking a +0.23% move from the previous day. This move outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.07%.
The the stock of biggest U.S. mortgage lender has risen by 10.73% in the past month, leading the Finance sector's gain of 9.07% and the S&P 500's gain of 7.49%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. On that day, Wells Fargo is projected to report earnings of $1.24 per share, which would represent year-over-year growth of 85.07%. At the same time, our most recent consensus estimate is projecting a revenue of $20.25 billion, reflecting a 3.01% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.24 per share and revenue of $82.32 billion. These totals would mark changes of +66.88% and +11.56%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Wells Fargo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% higher. Currently, Wells Fargo is carrying a Zacks Rank of #3 (Hold).
Investors should also note Wells Fargo's current valuation metrics, including its Forward P/E ratio of 8.2. For comparison, its industry has an average Forward P/E of 8.66, which means Wells Fargo is trading at a discount to the group.
It is also worth noting that WFC currently has a PEG ratio of 0.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. WFC's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.