In the latest trading session, Wells Fargo (WFC) closed at $88.89, marking a -1.3% move from the previous day. This move lagged the S&P 500's daily loss of 0.09%. On the other hand, the Dow registered a loss of 0.38%, and the technology-centric Nasdaq increased by 0.13%.
The biggest U.S. mortgage lender's stock has climbed by 4.6% in the past month, exceeding the Finance sector's gain of 1.74% and the S&P 500's gain of 1.89%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. It is anticipated that the company will report an EPS of $1.66, marking a 16.9% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $21.5 billion, up 5.49% from the prior-year quarter.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $6.28 per share and revenue of $84.01 billion. These results would represent year-over-year changes of +16.95% and +2.09%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Wells Fargo. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Wells Fargo is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Wells Fargo is presently trading at a Forward P/E ratio of 14.34. This valuation marks a discount compared to its industry average Forward P/E of 17.73.
Meanwhile, WFC's PEG ratio is currently 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 27, positioning it in the top 11% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Wells Fargo & Company (WFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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