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Wells Fargo (WFC) Outpaces Stock Market Gains: What You Should Know

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  • WFC-PD

Wells Fargo (WFC) closed at $49.16 in the latest trading session, marking a +1.51% move from the prior day. This change outpaced the S&P 500's 1.32% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq lost 0.15%.

Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 5.34% over the past month. This has lagged the Finance sector's loss of 3.63% and the S&P 500's gain of 3.61% in that time.

Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. In that report, analysts expect Wells Fargo to post earnings of $1.11 per share. This would mark year-over-year growth of 73.44%. Our most recent consensus estimate is calling for quarterly revenue of $18.34 billion, up 2.33% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.63 per share and revenue of $75.59 billion, which would represent changes of +1029.27% and +4.5%, respectively, from the prior year.

Any recent changes to analyst estimates for Wells Fargo should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.55% higher. Wells Fargo is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 10.46. For comparison, its industry has an average Forward P/E of 11.63, which means Wells Fargo is trading at a discount to the group.

Also, we should mention that WFC has a PEG ratio of 1.02. 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 was holding an average PEG ratio of 1.37 at yesterday's closing price.

The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.

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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