The latest trading session ended with Wells Fargo (WFC) at $71.59, moving +1.49% from the previous trading day’s closing price. The stock outperformed the S&P 500, which was up 1.1% on the day. At the same time, the Dow gained 0.91% and the tech-heavy Nasdaq gained 1.35%.

Shares of the largest U.S. mortgage lender have fallen 8.27% over the past month, underperforming the financial sector’s loss of 4.4% and the S&P 500’s gain of 0.22%.

The investing community will be closely watching Wells Fargo’s performance in its upcoming earnings report. The company’s upcoming earnings per share are forecast at $1.33, up 3.1% from the year-ago quarter. Meanwhile, our most recent consensus estimate is calling for revenue of $20.5 billion, up 0.1% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.28 per share and revenue of $82.61 billion, representing changes of -2.76% and +0.02%, respectively, from the year-ago quarter corresponds to the previous year.

Investors should also note recent analyst estimate revisions for Wells Fargo. These recent revisions tend to reflect the evolving nature of near-term business trends. Therefore, positive estimate changes mean analysts are optimistic about the company’s business and profitability.

Empirical research suggests that these estimate revisions are directly related to upcoming stock performance. To take advantage of this, we have developed the Zacks Rank, a quantitative model that takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an admirable track record of superior performance, independently audited, with #1 stocks generating an average annual return of Earned +25% The Zacks Consensus EPS estimate has moved 0.29% higher over the past month. Currently, Wells Fargo has a Zacks Rank of #2 (Buy).

Wells Fargo is currently valued at a forward P/E ratio of 13.37. This represents a discount compared to its industry’s average Forward P/E of 16.57.

It should also be noted that WFC currently has a PEG ratio of 1.45. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The WFC industry had an average PEG ratio of 1.37 as of yesterday’s close.

The finance and investment banking industry is part of the financial sector. This industry currently has a Zacks Industry Rank of 47, putting it in the top 19% of all 250+ industries.

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