Wells Fargo (WFC) Gains As Market Dips: What You Should Know
In the latest trading session, Wells Fargo (WFC) closed at $37.69, marking a +1.48% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.31%. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq lost 2.7%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 20.78% in the past month. In that same time, the Finance sector gained 6.16%, while the S&P 500 gained 1.32%.
Investors will be hoping for strength from WFC as it approaches its next earnings release, which is expected to be April 14, 2021. In that report, analysts expect WFC to post earnings of $0.59 per share. This would mark year-over-year growth of 5800%. Meanwhile, our latest consensus estimate is calling for revenue of $17.37 billion, down 1.94% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.57 per share and revenue of $69.94 billion. These totals would mark changes of +526.83% and -3.31%, respectively, from last year.
Any recent changes to analyst estimates for WFC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.73% higher. WFC is currently a Zacks Rank #3 (Hold).
Looking at its valuation, WFC is holding a Forward P/E ratio of 14.43. For comparison, its industry has an average Forward P/E of 13.28, which means WFC is trading at a premium to the group.
Also, we should mention that WFC has a PEG ratio of 1.49. 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. WFC's industry had an average PEG ratio of 2.01 as of yesterday's close.
The Banks - Major Regional industry is part of the Finance sector. This group has a Zacks Industry Rank of 51, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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