Wells Fargo (WFC) Outperforms Broader Market: What You Need to Know

The latest trading session saw Wells Fargo (WFC) ending at $74.16, denoting a +1.17% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 1.12%. On the other hand, the Dow registered a gain of 1.14%, and the technology-centric Nasdaq increased by 1.46%.The biggest U.S. mortgage lender's shares have seen a decrease of 7.76% over the last month, not keeping up with the Finance sector's loss of 1.89% and the S&P 500's loss of 4.13%.The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. The company is expected to report EPS of $1.24, down 1.59% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $20.89 billion, reflecting a 0.14% rise from the equivalent quarter last year.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.87 per share and a revenue of $85.17 billion, indicating changes of +9.31% and +3.5%, respectively, from the former year.It is also important to note the recent changes to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.65% rise in the Zacks Consensus EPS estimate. Wells Fargo is currently a Zacks Rank #1 (Strong Buy).From a valuation perspective, Wells Fargo is currently exchanging hands at a Forward P/E ratio of 12.48. This valuation marks a discount compared to its industry's average Forward P/E of 13.26.It is also worth noting that WFC currently has a PEG ratio of 1.1. 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. The Financial - Investment Bank industry had an average PEG ratio of 1.08 as trading concluded yesterday.The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 3, positioning it in the top 2% of all 250+ industries.The Zacks Industry Rank is ordered 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.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wells Fargo & Company (WFC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks