In the latest trading session, Wells Fargo (WFC) closed at $46.98, marking a -0.97% move from the previous day. This change was narrower than the S&P 500's 1.54% loss on the day. Elsewhere, the Dow lost 1.45%, while the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the biggest U.S. mortgage lender had gained 2.35% in the past month. In that same time, the Finance sector gained 7.69%, while the S&P 500 gained 4.54%.
Wall Street will be looking for positivity from Wells Fargo as it approaches its next earnings report date. This is expected to be January 13, 2023. In that report, analysts expect Wells Fargo to post earnings of $1.28 per share. This would mark a year-over-year decline of 7.25%. Our most recent consensus estimate is calling for quarterly revenue of $20.08 billion, down 3.7% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.80 per share and revenue of $74.38 billion, which would represent changes of -23.23% and -4.67%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. Wells Fargo currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 12.48. This represents a premium compared to its industry's average Forward P/E of 10.68.
Investors should also note that WFC has a PEG ratio of 1.22 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Major Regional was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Banks - Major Regional industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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