Wells Fargo (WFC) closed at $91.48 in the latest trading session, marking a -1.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.38%.
The biggest U.S. mortgage lender's stock has climbed by 10.02% in the past month, exceeding the Finance sector's gain of 4.09% and the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. The company is predicted to post an EPS of $1.66, indicating a 16.9% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $21.51 billion, indicating a 5.55% upward movement from the same quarter last year.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $6.28 per share and revenue of $84.07 billion. These results would represent year-over-year changes of +16.95% and +2.15%, respectively.
It is also important to note the recent changes to analyst estimates for Wells Fargo. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Wells Fargo presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Wells Fargo is presently being traded at a Forward P/E ratio of 14.75. This valuation marks a discount compared to its industry average Forward P/E of 17.85.
We can additionally observe that WFC currently boasts a PEG ratio of 0.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.07.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 29, this industry ranks in the top 12% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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