Understanding the Prospects of Wells Fargo & Company (WFC): Earnings Estimate Revisions and Zacks Rank

Wells Fargo (WFC) has seen a +5.7% return over the past month, outperforming the Zacks S&P 500 composite's +1.6% change. Earnings estimate revisions are a key driver of stock price movements. For Q1, Wells Fargo is expected to post earnings of $1.53 per share, a +0.7% change from the year-ago quarter. The Zacks Rank, which harnesses the power of earnings estimate revisions, rates Wells Fargo a Zacks Rank #3 (Hold).

Wells Fargo & Company (WFC) has shown robust performance over the past month, with a +5.7% return, significantly outperforming the Zacks S&P 500 composite's +1.6% change. This performance is driven by several key factors, including earnings estimate revisions and positive analyst ratings.

For the first quarter of 2025, Wells Fargo is expected to post earnings of $1.53 per share, a +0.7% change from the year-ago quarter. The Zacks Rank, which evaluates the power of earnings estimate revisions, rates Wells Fargo a Zacks Rank #3 (Hold). This indicates that while the company's earnings are improving, the market's expectations are relatively stable.

Institutional investors have also shown significant interest in Wells Fargo. Epoch Investment Partners Inc. increased its holdings by 31% in the first quarter, bringing its total shares to 405,781, valued at approximately $29.13 million [1]. Additionally, Massachusetts Financial Services Co. boosted its holdings by 277.4% in the same period, owning 10,740,934 shares valued at $771,092,000 [1].

Wells Fargo's recent earnings results have been positive. The company reported $1.54 earnings per share for the quarter, exceeding analysts' consensus estimates of $1.41 by $0.13. This quarterly performance was supported by a net margin of 16.82% and a return on equity of 12.29%. Revenue for the quarter was $20.82 billion, up 0.6% compared to the same period last year [1].

Analysts have provided a mixed outlook on Wells Fargo's stock. Morgan Stanley raised its price target to $87.00 and gave the company an "overweight" rating, while Evercore ISI reiterated an "outperform" rating. However, Raymond James Financial downgraded the stock from a "strong-buy" rating to a "market perform" rating [1]. Despite these varying opinions, Wells Fargo currently has a consensus rating of "Moderate Buy" and a consensus price target of $81.58 [1].

Wells Fargo has also faced regulatory scrutiny. The Wall Street bank's main broker-dealer, Wells Fargo Clearing Services, agreed to pay more than $3 million in penalties for failing to properly supervise short-term trading recommendations made by its representatives. This resulted in client losses and gains for the firm. Wells Fargo has implemented an enhanced trade review system and revised its supervisory procedures to prevent future misconduct [2].

In conclusion, Wells Fargo has shown strong financial performance and positive analyst ratings, making it an attractive option for investors. However, the company's regulatory issues and mixed analyst opinions should be considered when making investment decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-epoch-investment-partners-inc-has-2913-million-stock-holdings-in-wells-fargo-company-wfc-2025-08-27/
[2] https://www.investmentnews.com/regulation-and-legislation/wells-fargo-slapped-with-3m-in-sanctions-for-trading-supervision-shortfalls/257152