Wells Fargo (WFC) closed at $45.18 in the latest trading session, marking a +0.6% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 0.57%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 2.03% over the past month, lagging the Finance sector's loss of 0.77% and the S&P 500's gain of 0.1% in that time.
WFC will be looking to display strength as it nears its next earnings release, which is expected to be July 14, 2019. In that report, analysts expect WFC to post earnings of $1.17 per share. This would mark year-over-year growth of 8.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.92 billion, down 2.95% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.73 per share and revenue of $83.57 billion. These totals would mark changes of +10.51% and -3.29%, respectively, from last year.
Any recent changes to analyst estimates for WFC should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. WFC is currently a Zacks Rank #4 (Sell).
In terms of valuation, WFC is currently trading at a Forward P/E ratio of 9.49. This valuation marks a discount compared to its industry's average Forward P/E of 10.91.
We can also see that WFC currently has a PEG ratio of 0.85. 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. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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