Yahoo Finance Wells Fargo (WFC) Gains As Market Dips: What You Should Know
Wells Fargo (WFC) closed the most recent trading day at $46.84, moving +0.73% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had gained 3.73% over the past month. This has lagged the Finance sector's gain of 7.64% and the S&P 500's gain of 6.77% in that time.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. This is expected to be January 13, 2023. The company is expected to report EPS of $1.28, down 7.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.08 billion, down 3.7% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $3.80 per share and revenue of $74.38 billion. These results would represent year-over-year changes of -23.23% and -4.67%, respectively.
Investors should also note any recent changes to analyst estimates for Wells Fargo. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 12.24 right now. Its industry sports an average Forward P/E of 10.43, so we one might conclude that Wells Fargo is trading at a premium comparatively.
It is also worth noting that WFC currently has a PEG ratio of 1.2. 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 Banks - Major Regional industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Wells Fargo & Company (WFC) : Free Stock Analysis Report
