Wells Fargo (WFC) closed at $43.40 in the latest trading session, marking a -0.6% move from the prior day. This change was narrower than the S&P 500's 1.44% loss on the day. At the same time, the Dow lost 1.03%, and the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 7.24% over the past month. This has lagged the Finance sector's gain of 3.92% and the S&P 500's gain of 6.22% 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
It is also important to note the recent changes to analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 11.49 right now. This represents a premium compared to its industry's average Forward P/E of 10.17.
Also, we should mention that WFC has a PEG ratio of 1.13. 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. WFC's industry had an average PEG ratio of 1.26 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 95, which puts it in the top 38% 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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