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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 $53.92, moving -0.83% from the previous trading session. This change lagged the S&P 500's 0.32% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.4%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had gained 0.69% over the past month. This has lagged the Finance sector's gain of 1.09% and the S&P 500's gain of 2.51% in that time.
Investors will be hoping for strength from WFC as it approaches its next earnings release. The company is expected to report EPS of $1.09, down 9.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.90 billion, down 5.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.50 per share and revenue of $83.56 billion, which would represent changes of +5.14% and -3.3%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for WFC. Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.54% lower. WFC currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, WFC is holding a Forward P/E ratio of 12.08. Its industry sports an average Forward P/E of 12.5, so we one might conclude that WFC is trading at a discount comparatively.
Also, we should mention that WFC has a PEG ratio of 1.08. 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 was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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 $53.92, moving -0.83% from the previous trading session. This change lagged the S&P 500's 0.32% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.4%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had gained 0.69% over the past month. This has lagged the Finance sector's gain of 1.09% and the S&P 500's gain of 2.51% in that time.
Investors will be hoping for strength from WFC as it approaches its next earnings release. The company is expected to report EPS of $1.09, down 9.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.90 billion, down 5.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.50 per share and revenue of $83.56 billion, which would represent changes of +5.14% and -3.3%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for WFC. Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 0.54% lower. WFC currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, WFC is holding a Forward P/E ratio of 12.08. Its industry sports an average Forward P/E of 12.5, so we one might conclude that WFC is trading at a discount comparatively.
Also, we should mention that WFC has a PEG ratio of 1.08. 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 was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.