Wells Fargo (WFC) Stock Slides as Market Rises: Facts to Know Before You Trade

Wells Fargo (WFC) shares declined 1.32% to $75.45, underperforming the S&P 500's 0.55% gain. Ahead of its July 14, 2025 earnings release, EPS is projected to increase 6.02% year-over-year to $1.41, with revenue expected to rise 0.27% to $20.75 billion; full-year estimates project an 8.75% increase in EPS to $5.84 and a 1.54% increase in revenue to $83.57 billion. The stock currently holds a Zacks Rank of #3 (Hold), with its Forward P/E ratio of 13.08 indicating a discount compared to the industry average of 14.9, although the Zacks Consensus EPS estimate has moved 0.52% lower over the past month.

Analysis

Wells Fargo (WFC) experienced a recent downturn, closing at $75.45, a 1.32% decline that underperformed the broader market, as evidenced by the S&P 500's 0.55% gain, the Dow's 0.25% rise, and the Nasdaq's 0.63% increase. Over the past month, WFC's shares appreciated 2.11%, lagging both the Finance sector's 3.04% gain and the S&P 500's 6.29% advance. Investor attention is now focused on the upcoming earnings disclosure scheduled for July 14, 2025. Projections indicate an earnings per share (EPS) of $1.41, representing a 6.02% year-over-year increase, while revenue is anticipated to reach $20.75 billion, a modest 0.27% growth from the prior year's quarter. Full-year consensus estimates project an EPS of $5.84 (+8.75% YoY) and revenue of $83.57 billion (+1.54% YoY). However, a note of caution arises from recent analyst activity, with the Zacks Consensus EPS estimate having decreased by 0.52% over the last month, a factor that can signal evolving short-term business trends. Despite this, Wells Fargo maintains a Zacks Rank of #3 (Hold). From a valuation perspective, WFC trades at a Forward P/E ratio of 13.08, a discount compared to its industry's average of 14.9. Its PEG ratio stands at 1.25, aligning with the industry average. The Financial - Investment Bank industry, to which WFC belongs, is positioned in the top 37% of over 250 industries tracked by Zacks, indicating a generally favorable sector backdrop.

Key Decisions for Investors

• Investors should closely monitor Wells Fargo's upcoming earnings report on July 14, 2025, as it will be a key catalyst given the projected EPS growth of 6.02% and revenue growth of 0.27% for the quarter.
• The recent 0.52% downward revision in the Zacks Consensus EPS estimate warrants attention, suggesting a need to scrutinize management's guidance and underlying business trends upon the earnings release.
• Given the Zacks Rank #3 (Hold), current shareholders might consider maintaining their positions pending further clarity from earnings, while prospective investors could view the discounted Forward P/E of 13.08 relative to the industry as a point for further due diligence, weighing it against the modest revenue growth and recent estimate revisions.