Wells Fargo (WFC) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest trading session, Wells Fargo (WFC) closed at $75.28, marking a -1.17% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.25%. Meanwhile, the Dow experienced a drop of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.97%.Coming into today, shares of the biggest U.S. mortgage lender had gained 17.76% in the past month. In that same time, the Finance sector gained 4.93%, while the S&P 500 gained 3.51%.Market participants will be closely following the financial results of Wells Fargo in its upcoming release. It is anticipated that the company will report an EPS of $1.32, marking a 2.33% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $20.43 billion, showing a 0.25% drop compared to the year-ago quarter.For the full year, the Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $82.6 billion, which would represent changes of -2.95% and 0%, respectively, from the prior year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wells Fargo. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.09% higher. As of now, Wells Fargo holds a Zacks Rank of #3 (Hold).Investors should also note Wells Fargo's current valuation metrics, including its Forward P/E ratio of 14.46. For comparison, its industry has an average Forward P/E of 17.18, which means Wells Fargo is trading at a discount to the group.Meanwhile, WFC's PEG ratio is currently 1.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.55.The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 48, finds itself in the top 20% echelons 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.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks