In the most recent trading session, Wells Fargo (WFC) closed at $59.05, up +1.39% from the previous day. The company’s stock price outperformed the S&P 500, which rose 0.25% on the day. Elsewhere in the market, the Dow rose 0.15% and the tech-heavy Nasdaq rose 0.03%.
Shares of the nation’s largest mortgage lender have fallen 4.05% over the past month, lagging behind the Financial sector’s loss of 2.3% and the S&P 500’s gain of 3.34%.
Wells Fargo’s upcoming earnings release will be of major interest to investors. The company’s earnings report is scheduled for July 12, 2024. The company is expected to report EPS of $1.26, up 0.8% from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.26 billion, down 1.31% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.03 per share and revenue of $81.79 billion, which would represent declines of -7.37% and -0.98%, respectively, from the prior year.
Additionally, it would be beneficial for investors to monitor recent changes to analyst estimates for Wells Fargo. These latest adjustments often reflect shifting short-term business patterns. As such, positive estimate revisions reflect analysts’ optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with future stock price movements.To take advantage of this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable, third-party-audited, track record of outperformance, with #1 rated stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.18% higher. Wells Fargo currently has a Zacks Rank #2 (Buy).
Looking at valuation, Wells Fargo is currently trading with a Forward P/E ratio of 11.58, which represents a premium compared to its industry’s average Forward P/E of 10.67.
We can also see that WFC currently has a PEG ratio of 1.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes into account a company’s expected earnings growth rate. The average PEG ratio for the Banks – Major Regional industry was 1.75 as of yesterday’s market close.
The Banking – Major Regional industry is part of the Financial Services sector. This industry currently has a Zacks Industry Rank of #58, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the vitality of our particular industry groups by calculating the average Zacks Rank of the individual stocks included in the groups, and 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 upcoming trading sessions, be sure to utilize Zacks.com.
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Wells Fargo & Company (WFC): Free Stock Analysis Report
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