Yahoo Finance Wells Fargo (WFC) Laps the Stock Market: Here's Why
In the latest trading session, Wells Fargo (WFC) closed at $59.05, marking a +1.39% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.03%.
The biggest U.S. mortgage lender's shares have seen a decrease of 4.05% over the last month, not keeping up with the Finance sector's loss of 2.3% and the S&P 500's gain of 3.34%.
The upcoming earnings release of Wells Fargo will be of great interest to investors. The company's earnings report is expected on July 12, 2024. It is anticipated that the company will report an EPS of $1.26, marking a 0.8% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.26 billion, down 1.31% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.03 per share and a revenue of $81.79 billion, signifying shifts of -7.37% and -0.98%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wells Fargo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.18% higher. Wells Fargo currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Wells Fargo is presently trading at a Forward P/E ratio of 11.58. This represents a premium compared to its industry's average Forward P/E of 10.67.
We can also see that WFC currently has a PEG ratio of 1.55. 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 average PEG ratio for the Banks - Major Regional industry stood at 1.75 at the close of the market yesterday.
The Banks - Major Regional industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.
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Wells Fargo & Company (WFC) : Free Stock Analysis Report
