In the latest trading session, Wells Fargo (WFC) closed at $86.68, marking a +2.01% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.25%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw a decrease of 0.52%.
Heading into today, shares of the bank had lost 0.54% over the past month, lagging the Finance sector's gain of 1.34% and the S&P 500's gain of 4.34%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. It is anticipated that the company will report an EPS of $1.84, marking a 6.36% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $22.22 billion, indicating a 3.66% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.25 per share and revenue of $88.65 billion, which would represent changes of +15.45% and +5.91%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wells Fargo. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. As of now, Wells Fargo holds a Zacks Rank of #3 (Hold).
In terms of valuation, Wells Fargo is presently being traded at a Forward P/E ratio of 11.72. This indicates a discount in contrast to its industry's Forward P/E of 14.75.
Investors should also note that WFC has a PEG ratio of 0.93 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.02.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 14% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Wells Fargo & Company (WFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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