The most recent trading session ended with Wells Fargo (WFC) standing at $71.59, reflecting a +1.49% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 1.1% for the day. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 1.35%.
The the stock of biggest U.S. mortgage lender has fallen by 8.27% in the past month, lagging the Finance sector's loss of 4.4% and the S&P 500's gain of 0.22%.
The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. The company's upcoming EPS is projected at $1.33, signifying a 3.1% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $20.5 billion, up 0.1% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.28 per share and revenue of $82.61 billion, indicating changes of -2.76% and +0.02%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Wells Fargo. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. Currently, Wells Fargo is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Wells Fargo is presently being traded at a Forward P/E ratio of 13.37. This denotes a discount relative to the industry's average Forward P/E of 16.57.
One should further note that WFC currently holds a PEG ratio of 1.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. WFC's industry had an average PEG ratio of 1.37 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% of all 250+ industries.