Wells Fargo (WFC) closed at $40.98 in the latest trading session, marking a -0.61% move from the prior day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, lost 2.33%.
Heading into today, shares of the biggest U.S. mortgage lender had gained 2.08% over the past month, outpacing the Finance sector's loss of 2.32% and the S&P 500's gain of 1.03% in that time.
Investors will be hoping for strength from Wells Fargo as it approaches its next earnings release. On that day, Wells Fargo is projected to report earnings of $1.27 per share, which would represent year-over-year growth of 71.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.21 billion, up 18.67% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.79 per share and revenue of $80.31 billion. These results would represent year-over-year changes of +52.55% and +8.84%, respectively.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Wells Fargo is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 8.62. Its industry sports an average Forward P/E of 7.47, so we one might conclude that Wells Fargo is trading at a premium comparatively.
Investors should also note that WFC has a PEG ratio of 0.84 right now. 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. WFC's industry had an average PEG ratio of 1.11 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 232, which puts it in the bottom 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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