Here's Why Wells Fargo (WFC) Fell More Than Broader Market

In the latest trading session, Wells Fargo (WFC) closed at $77.19, marking a -2.32% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.67% for the day. Meanwhile, the Dow experienced a drop of 1.73%, and the technology-dominated Nasdaq saw a decrease of 2.15%.

The stock of biggest U.S. mortgage lender has fallen by 8.44% in the past month, lagging the Finance sector's loss of 8% and the S&P 500's loss of 6.15%.

The investment community will be closely monitoring the performance of Wells Fargo in its forthcoming earnings report. The company is scheduled to release its earnings on April 14, 2026. The company is predicted to post an EPS of $1.56, indicating a 22.83% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $21.69 billion, indicating a 7.65% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $6.91 per share and a revenue of $88.19 billion, demonstrating changes of +10.03% and +5.36%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Wells Fargo. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.11% lower. As of now, Wells Fargo holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Wells Fargo has a Forward P/E ratio of 11.43 right now. This expresses a discount compared to the average Forward P/E of 13.06 of its industry.

Investors should also note that WFC has a PEG ratio of 0.84 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. WFC's industry had an average PEG ratio of 0.99 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 60, this industry ranks in the top 25% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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

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