The most recent trading session ended with Wells Fargo (WFC) standing at $74.72, reflecting a -0.08% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 0.67%.
The the stock of biggest U.S. mortgage lender has risen by 1.33% in the past month, lagging the Finance sector's gain of 4.15% and the S&P 500's gain of 6.13%.
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. It is anticipated that the company will report an EPS of $1.42, marking a 6.77% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $20.95 billion, indicating a 1.25% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.83 per share and a revenue of $83.5 billion, indicating changes of +8.57% and +1.47%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.25% decrease. Wells Fargo is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 12.83. For comparison, its industry has an average Forward P/E of 14.93, which means Wells Fargo is trading at a discount to the group.
We can also see that WFC currently has a PEG ratio of 1.23. 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. The Financial - Investment Bank was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 20% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Wells Fargo & Company (WFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
