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Wells Fargo (WFC) Stock Moves -1.04%: What You Should Know

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Wells Fargo (WFC - Free Report) closed at $46.54 in the latest trading session, marking a -1.04% move from the prior day. This change was narrower than the S&P 500's 1.91% loss on the day. Meanwhile, the Dow lost 2.02%, and the Nasdaq, a tech-heavy index, lost 2.26%.

Coming into today, shares of the biggest U.S. mortgage lender had lost 10.96% in the past month. In that same time, the Finance sector lost 5.02%, while the S&P 500 lost 2.51%.

Wall Street will be looking for positivity from WFC as it approaches its next earnings report date. This is expected to be January 15, 2019. The company is expected to report EPS of $1.19, up 22.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.27 billion, down 3.53% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.28 per share and revenue of $86.12 billion. These totals would mark changes of +4.14% and -2.3%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for WFC. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 remained stagnant within the past month. WFC is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, WFC is currently trading at a Forward P/E ratio of 10.98. This represents a premium compared to its industry's average Forward P/E of 10.41.

Also, we should mention that WFC has a PEG ratio of 0.99. 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 1.11 as of yesterday's close.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% 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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