In the latest trading session, Wells Fargo (WFC) closed at $44.17, marking a -0.9% move from the previous day.
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This story originally appeared on Zacks
Wells Fargo (WFC) closed the most recent trading day at $44.17, moving -0.9% from the previous trading session. This change lagged the S&P 500’s 0.03% loss on the day.
Prior to today’s trading, shares of the biggest U.S. mortgage lender had lost 5.15% over the past month. This has lagged the Finance sector’s gain of 4.05% and the S&P 500’s gain of 3.59% in that time.
WFC will be looking to display strength as it nears its next earnings release. On that day, WFC is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 82.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.69 billion, down 0.9% from the year-ago period.
WFC’s full-year Zacks Consensus Estimates are calling for earnings of $4.37 per share and revenue of $74.88 billion. These results would represent year-over-year changes of +965.85% and +3.51%, respectively.
Any recent changes to analyst estimates for WFC should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
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 1.21% higher. WFC is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, WFC is currently trading at a Forward P/E ratio of 10.2. For comparison, its industry has an average Forward P/E of 10.98, which means WFC is trading at a discount to the group.
Meanwhile, WFC’s PEG ratio is currently 1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Banks – Major Regional was holding an average PEG ratio of 1.22 at yesterday’s closing price.
The Banks – Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 117, which puts it in the top 47% 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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