Wells Fargo (WFC) closed the most recent trading day at $75.52, moving -0.71% from the previous trading session. This change lagged the S&P 500's 0.39% loss on the day. Meanwhile, the Dow experienced a drop of 0.27%, and the technology-dominated Nasdaq saw a decrease of 0.38%.
The the stock of biggest U.S. mortgage lender has risen by 18.83% in the past month, leading the Finance sector's gain of 9.56% and the S&P 500's gain of 13.07%.
The investment community will be paying close attention to the earnings performance of Wells Fargo in its upcoming release. The company is slated to reveal its earnings on July 14, 2025. On that day, Wells Fargo is projected to report earnings of $1.42 per share, which would represent year-over-year growth of 6.77%. At the same time, our most recent consensus estimate is projecting a revenue of $20.95 billion, reflecting a 1.25% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.83 per share and a revenue of $83.5 billion, signifying shifts of +8.57% and +1.47%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Wells Fargo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.46% fall in the Zacks Consensus EPS estimate. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Wells Fargo is at present trading with a Forward P/E ratio of 13.05. This expresses a discount compared to the average Forward P/E of 15.25 of its industry.
Also, we should mention that WFC has a PEG ratio of 1.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial - Investment Bank industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 197, finds itself in the bottom 21% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 & Company (WFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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