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Wells Fargo (WFC) Stock Falls Amid Market Uptick: What Investors Need to Know

Wells Fargo (WFC) ended the recent trading session at $59.48, demonstrating a -1.21% swing from the preceding day's closing price. This change lagged the S&P 500's 0.03% gain on the day. On the other hand, the Dow registered a loss of 0.56%, and the technology-centric Nasdaq increased by 0.59%.

Shares of the biggest U.S. mortgage lender have appreciated by 0.69% over the course of the past month, underperforming the Finance sector's gain of 2.95% and the S&P 500's gain of 4.19%.

Market participants will be closely following the financial results of Wells Fargo in its upcoming release. The company is forecasted to report an EPS of $1.25, showcasing no movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.23 billion, down 1.49% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.01 per share and revenue of $81.53 billion, which would represent changes of -7.73% and -1.29%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Wells Fargo. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% higher. Wells Fargo currently has a Zacks Rank of #2 (Buy).

Looking at valuation, Wells Fargo is presently trading at a Forward P/E ratio of 12.02. This denotes a premium relative to the industry's average Forward P/E of 11.39.

We can also see that WFC currently has a PEG ratio of 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Banks - Major Regional industry had an average PEG ratio of 1.76.

The Banks - Major Regional industry is part of the Finance sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Wells Fargo & Company (WFC) : Free Stock Analysis Report

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Zacks Investment Research