In the latest trading session, Wells Fargo (WFC) closed at $46.28, marking a -0.77% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%.
Coming into today, shares of the biggest U.S. mortgage lender had lost 2.77% in the past month. In that same time, the Finance sector lost 1.27%, while the S&P 500 gained 0.46%.
Investors will be hoping for strength from WFC as it approaches its next earnings release. The company is expected to report EPS of $1.03, up 83.93% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.69 billion, down 0.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.37 per share and revenue of $74.98 billion. These totals would mark changes of +965.85% and +3.64%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for WFC. These recent revisions tend to reflect the evolving nature of short-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. 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 0.08% lower. WFC is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, WFC is currently trading at a Forward P/E ratio of 10.67. This valuation marks a discount compared to its industry's average Forward P/E of 10.99.
Also, we should mention that WFC has a PEG ratio of 1.05. 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 1.24 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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