In the latest trading session, Wells Fargo (WFC) closed at $71.11, marking a +0.38% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.07%. Elsewhere, the Dow saw a downswing of 0.62%, while the tech-heavy Nasdaq depreciated by 1.71%.

Heading into today, shares of the biggest U.S. mortgage lender had lost 11.43% over the past month, lagging the Finance sector's loss of 3.42% and the S&P 500's loss of 7.03% in that time.

Market participants will be closely following the financial results of Wells Fargo in its upcoming release. The company is expected to report EPS of $1.24, down 1.59% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $20.82 billion, indicating a 0.21% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.87 per share and a revenue of $85.05 billion, signifying shifts of +9.31% and +3.35%, respectively, from the last year.

Any recent changes to analyst estimates for Wells Fargo should also be noted by investors. 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. 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, the Zacks Consensus EPS estimate has shifted 0.27% downward. Wells Fargo presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 12.06. This expresses a discount compared to the average Forward P/E of 13.9 of its industry.

One should further note that WFC currently holds a PEG ratio of 1.06. 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. The Financial - Investment Bank was holding an average PEG ratio of 1.06 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

This article originally published on Zacks Investment Research (zacks.com).

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