Wells Fargo (WFC) Dips More Than Broader Market: What You Should Know

In the latest close session, Wells Fargo (WFC) was down 1.81% at $76.88. This change lagged the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq increased by 0.08%.

The biggest U.S. mortgage lender's stock has dropped by 14.81% in the past month, falling short of the Finance sector's loss of 5.6% and the S&P 500's loss of 2.16%.

Market participants will be closely following the financial results of Wells Fargo in its upcoming release. The company plans to announce its earnings on April 14, 2026. In that report, analysts expect Wells Fargo to post earnings of $1.56 per share. This would mark year-over-year growth of 22.83%. Our most recent consensus estimate is calling for quarterly revenue of $21.67 billion, up 7.55% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.92 per share and a revenue of $88.26 billion, signifying shifts of +10.19% and +5.44%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Wells Fargo. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.37% higher. Wells Fargo is currently a Zacks Rank #3 (Hold).

In terms of valuation, Wells Fargo is currently trading at a Forward P/E ratio of 11.31. This valuation marks a discount compared to its industry average Forward P/E of 13.1.

Investors should also note that WFC has a PEG ratio of 0.85 right now. 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 1.02 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 27, putting it in the top 12% of all 250+ industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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

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