Wells Fargo (WFC) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Wells Fargo (WFC) closed at $48.32, marking a -1.57% move from the previous day. This change lagged the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.82%, while the tech-heavy Nasdaq added 0.78%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 1.6% over the past month, lagging the Finance sector's loss of 1.59% and the S&P 500's gain of 1.25% in that time.
WFC will be looking to display strength as it nears its next earnings release, which is expected to be April 12, 2019. On that day, WFC is projected to report earnings of $1.09 per share, which would represent a year-over-year decline of 2.68%. Our most recent consensus estimate is calling for quarterly revenue of $20.87 billion, down 4.84% from the year-ago period.
WFC's full-year Zacks Consensus Estimates are calling for earnings of $4.96 per share and revenue of $85.05 billion. These results would represent year-over-year changes of +15.89% and -1.58%, respectively.
Investors might also notice recent changes to analyst estimates for WFC. 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 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 has moved 0.02% higher. WFC is currently a Zacks Rank #3 (Hold).
Digging into valuation, WFC currently has a Forward P/E ratio of 9.89. For comparison, its industry has an average Forward P/E of 10.28, which means WFC is trading at a discount to the group.
It is also worth noting that WFC currently has a PEG ratio of 0.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Banks - Major Regional stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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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