Wells Fargo (WFC) closed the most recent trading day at $45.46, moving +0.69% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.2%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 5.74% over the past month, lagging the Finance sector's gain of 1.25% and the S&P 500's gain of 2.11% in that time.
Wall Street will be looking for positivity from WFC as it approaches its next earnings report date. The company is expected to report EPS of $0.93, up 240.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.75 billion, down 0.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.87 per share and revenue of $71.19 billion. These totals would mark changes of +843.9% and -1.59%, respectively, from last year.
Any recent changes to analyst estimates for WFC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.89% higher within the past month. WFC is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, WFC currently has a Forward P/E ratio of 11.66. Its industry sports an average Forward P/E of 12.08, so we one might conclude that WFC is trading at a discount comparatively.
We can also see that WFC currently has a PEG ratio of 1.14. 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 1.42 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 138, putting it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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