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Wells Fargo (WFC) Stock Moves -1.44%: What You Should Know

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Wells Fargo (WFC - Free Report) ended the recent trading session at $77.50, demonstrating a -1.44% swing from the preceding day's closing price. This move was narrower than the S&P 500's daily loss of 1.71%. Meanwhile, the Dow experienced a drop of 1.7%, and the technology-dominated Nasdaq saw a decrease of 2.2%.

The biggest U.S. mortgage lender's stock has climbed by 1.55% in the past month, falling short of the Finance sector's gain of 2.23% and the S&P 500's gain of 2.2%.

Analysts and investors alike will be keeping a close eye on the performance of Wells Fargo in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.24, reflecting a 1.59% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.89 billion, up 0.14% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.89 per share and a revenue of $85.17 billion, indicating changes of +9.68% and +3.5%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wells Fargo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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.

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 past month, the Zacks Consensus EPS estimate has shifted 0.93% upward. As of now, Wells Fargo holds a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Wells Fargo is currently being traded at a Forward P/E ratio of 13.35. This represents a discount compared to its industry's average Forward P/E of 14.31.

It's also important to note that WFC currently trades at a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 3, positioning it in the top 2% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow WFC in the coming trading sessions, be sure to utilize Zacks.com.


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