Wells Fargo Fared Better than the Financial Sector in 2015

Upcoming earnings announcement

Wells Fargo (WFC) is the country’s largest mortgage lender. It’s scheduled to declare its 4Q15 earnings on January 15, 2016. Wall Street analysts expect Wells Fargo to post an EPS (earnings per share) of $1.02 YoY (year-over-year). However, analysts expect the revenue to rise slightly.

In 2015, Wells Fargo shares slightly outperformed the financial sector. The Financial Select Sector SPDR ETF (XLF) represents the financial sector. In 2015, it lost 3.6%. In comparison, Wells Fargo generated returns of -1.7%. XLF invests 8.7% of its portfolio in Wells Fargo.

Wells Fargo Fared Better than the Financial Sector in 2015

Peers’ performance

Throughout the year, banking stocks witnessed volatility. They’re highly correlated to global events. From January to July, banking stocks outperformed the broad markets. In the last few months, all of these gains were erased. The shares of large-cap banks like Goldman Sachs (GS), Citigroup (C), and Bank of America (BAC) underperformed. They generated returns of -7.3%, -4.6%, and -6.0% in 2015. Morgan Stanley was the worst performer among large-cap banks. It lost 17.8% last year.

Company overview

Wells Fargo provides retail, commercial, and corporate banking services. It has three operating segments—Community Banking, Wholesale Banking and Wealth, and Brokerage and Retirement. As of December 31, 2014, it had assets of $1.7 trillion, loans of $863 billion, and deposits of $1.2 trillion.