Wells Fargo (WFC) closed at $71.57 in the latest trading session, marking a -0.03% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
Heading into today, shares of the biggest U.S. mortgage lender had lost 0.04% over the past month, outpacing the Finance sector's loss of 4.27% and the S&P 500's loss of 2.7% in that time.
The investment community will be paying close attention to the earnings performance of Wells Fargo in its upcoming release. The company is slated to reveal its earnings on January 15, 2025. The company is forecasted to report an EPS of $1.34, showcasing a 3.88% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $20.55 billion, reflecting a 0.34% rise from the equivalent quarter last 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.45% increase. At present, Wells Fargo boasts a Zacks Rank of #2 (Buy).
In the context of valuation, Wells Fargo is at present trading with a Forward P/E ratio of 13.02. This valuation marks a discount compared to its industry's average Forward P/E of 14.64.
Also, we should mention that WFC has a PEG ratio of 1.44. 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. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.27.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Wells Fargo & Company (WFC) : Free Stock Analysis Report
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