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Wells Fargo (WFC) Increases Despite Market Slip: Here's What You Need to Know
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In the latest trading session, Wells Fargo (WFC - Free Report) closed at $56.72, marking a +0.04% move from the previous day. This move outpaced the S&P 500's daily loss of 0.32%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.85%.
The biggest U.S. mortgage lender's shares have seen a decrease of 6.11% over the last month, not keeping up with the Finance sector's gain of 2.55% and the S&P 500's gain of 1.52%.
The investment community will be paying close attention to the earnings performance of Wells Fargo in its upcoming release. The company is expected to report EPS of $1.27, down 8.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.4 billion, down 2.2% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.10 per share and a revenue of $82.29 billion, representing changes of -6.08% and -0.38%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.17% upward. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 11.12. This represents a discount compared to its industry's average Forward P/E of 12.14.
Investors should also note that WFC has a PEG ratio of 1.4 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.49 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 42, putting it in the top 17% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Wells Fargo (WFC) Increases Despite Market Slip: Here's What You Need to Know
In the latest trading session, Wells Fargo (WFC - Free Report) closed at $56.72, marking a +0.04% move from the previous day. This move outpaced the S&P 500's daily loss of 0.32%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.85%.
The biggest U.S. mortgage lender's shares have seen a decrease of 6.11% over the last month, not keeping up with the Finance sector's gain of 2.55% and the S&P 500's gain of 1.52%.
The investment community will be paying close attention to the earnings performance of Wells Fargo in its upcoming release. The company is expected to report EPS of $1.27, down 8.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.4 billion, down 2.2% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.10 per share and a revenue of $82.29 billion, representing changes of -6.08% and -0.38%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.17% upward. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 11.12. This represents a discount compared to its industry's average Forward P/E of 12.14.
Investors should also note that WFC has a PEG ratio of 1.4 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.49 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 42, putting it in the top 17% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.