Wells Fargo (WFC) ended the recent trading session at $70.24, demonstrating a -0.24% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.43% for the day. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.9%.
Prior to today's trading, shares of the biggest U.S. mortgage lender had lost 6.47% over the past month. This has lagged the Finance sector's loss of 5.69% and the S&P 500's loss of 1.98% in that time.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. The company is predicted to post an EPS of $1.33, indicating a 3.1% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $20.5 billion, showing a 0.1% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.28 per share and a revenue of $82.61 billion, indicating changes of -2.76% and +0.02%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Wells Fargo. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. Wells Fargo is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Wells Fargo currently has a Forward P/E ratio of 13.35. This denotes a discount relative to the industry's average Forward P/E of 16.68.
Investors should also note that WFC has a PEG ratio of 1.44 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial - Investment Bank was holding an average PEG ratio of 1.37 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.