Wells Fargo (WFC)

Tailwinds: no tariffs on US banks and they will be less regulated by Trump. Today, Morgan Stanley said WFC could be a huge winner with less regulation: better loan growth, trading revenues and lower expenses. He's bullish.

Looks really good at these levels.

They reported this week, missing slightly expectations on the top line, but beat huge on the bottom. Net interest income beat and brokerage commissions were up. Excellent credit quality and maintained their aggressive share buybacks. Management raised the forecast for net interest income.

Banks earnings happen next Wednesday: JPM, Goldman, Wells Fargo and Citi. He expects good reports from all. The expected increase in M&A will benefit all. These stocks are off their highs at very low PEs. He's been buying them.

He's overweight financials, which benefit from a soft landing, steeper yield curve which drives their net interest income higher. WFC has managed expenses very well. There's more bang for you buck here vs. its peers.

Excellent growth rate. Prospects look strong for the company. Would be top US bank to pick at this time. Very strong balance sheet with good lending capabilities. Share price expected to continue to rise. Recent quarter results excellent - continue to beat expectations. Dividend very good and reliable. 

She re-bought after they reported a great quarter this week, gaining market share in their non-interest income (investment banking, wealth management, credit cards) and their balance sheet is excellent. They have enormous room to catch up in their assets vs. peers.

He believes in the CEO. Shares are up 10% and expects it to reach $61-62.

High quality. Growth. Stress tests have been good. If you don't want to be penalized by the currency exchange, consider buying the CDR, for which you pay a small fee.

One of largest community banks in USA. Recent earnings came in as expected. If interest rates fall - will be good for business. Long term, not expecting large growth. Is difficult to grow business in very competitive banking market. Would not recommend buying at this time. 

All the banks report Friday. It won't be good for the market if the Fed slashes interest rates. Wells benefits if rates stay higher for longer.

Wells trades at 1.3x book value, but at low 10x PE. Just suffered two downgrades, which he disagrees with. Management is highly focused on cutting costs, improving new technology, and they're getting away from their problematic past. He likes it that WFC is out of favour, because it's an opportunity.

Legacy tarnish on management. There's such choice in the space, why would he pick one with management missteps? He likes the true blue of JPM, BAC, and MS.

Better options in banking sector (JP Morgan/Bank of America). If suffered losses, can sell and move on. Outlook for business not as good as other names. Not as well managed. 

Lots of ethical problems, under strict regulatory scrutiny, which holds back earnings and dividend growth. She got out when those problems started, not tempted to return. Sell, and look to JPM or MDLZ.