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Wells Fargo (WFC) closed the most recent trading day at $47.87, moving -0.19% from the previous trading session. This change lagged the S&P 500’s 0.41% gain on the day.
Prior to today’s trading, shares of the biggest U.S. mortgage lender had gained 8.24% over the past month. This has outpaced the Finance sector’s loss of 1.6% and the S&P 500’s loss of 4.08% in that time.
Investors will be hoping for strength from WFC as it approaches its next earnings release. The company is expected to report EPS of $1.04, up 85.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.7 billion, down 0.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.40 per share and revenue of $74.97 billion, which would represent changes of +973.17% and +3.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for WFC. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.66% higher within the past month. WFC is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note WFC’s current valuation metrics, including its Forward P/E ratio of 10.9. This valuation marks a discount compared to its industry’s average Forward P/E of 11.93.
Meanwhile, WFC’s PEG ratio is currently 1.07. 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 1.35 at yesterday’s closing price.
The Banks – Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% 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.
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
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