In the latest market close, Wells Fargo (WFC) reached $73.47, with a -1.04% movement compared to the previous day. This move was narrower than the S&P 500's daily loss of 1.12%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 2.04%.

The biggest U.S. mortgage lender's shares have seen a decrease of 2.32% over the last month, not keeping up with the Finance sector's loss of 0.06% and outstripping the S&P 500's loss of 2.91%.

Analysts and investors alike will be keeping a close eye on the performance of Wells Fargo in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.23, showcasing a 2.38% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $20.82 billion, showing a 0.21% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.85 per share and revenue of $85 billion, which would represent changes of +8.94% and +3.29%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Wells Fargo. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.38% lower. Currently, Wells Fargo is carrying a Zacks Rank of #3 (Hold).

Investors should also note Wells Fargo's current valuation metrics, including its Forward P/E ratio of 12.69. This represents a discount compared to its industry's average Forward P/E of 15.4.

We can additionally observe that WFC currently boasts a PEG ratio of 1.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. WFC's industry had an average PEG ratio of 1.1 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 31, this industry ranks in the top 13% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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