NYSE:WFC

Wells Fargo (WFC)

86.27
+1.97 (2.34%)
as of Jun 25, 2026, 2:52:19 pm Market Open.
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Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

Wells Fargo (WFC) has faced persistent challenges, with experts noting that the bank has been cheap for decades but struggles with management issues and execution problems. Its return on equity (ROE) sits in the middle compared to peers, and it carries a riskier credit profile, evident in its higher non-performing loan ratios and elevated efficiency ratio. Recent earnings reports indicate mixed performance; while there was some growth, it failed to meet expectations due to higher severance expenses, leading to a decline in share value. Experts are cautious about the bank's traditional lending business, although there's optimism due to the lifting of asset caps that may allow for growth. Overall, the sentiment is one of careful observation as the company undertakes a turnaround under new leadership.

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Consensus
Cautious
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Valuation
Undervalued
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Similar
JPMorgan,JPM
DON'T BUY

Banks reported their Q2 today, but the reaction to Wells is so-so, muted. Office real estate is weak and the CEO talking about the regulatory environment tightening--you must be concerned about these.

BUY

She bought more today upon WF's positive quarter. WF reiterated their net interest income, but that doesn't look as positive as JPM's comments today, so it's silly the market is reacting this way. 17% total revenue growth and 45% net interest income up 45% YOY. All capital levels are good and reinstated share buybacks. EPS and revenue beats. None-interest income is -13% YOY. Trades at 0.9x book, better than JPM's.

BUY
The U.S. banks report next Friday

He expects a strong report. They had a nice upgrade today. Good loan loss reserves and they have a safe bond portfolio.

PAST TOP PICK
(A Top Pick Apr 01/21, Down 21%)

Financial sector seeing pressure since Silicon Valley Bank collapse.
Trading at discount to book value.
Will continue to own shares and has been buying more.
~3.2% dividend yield with a 7-8x P/E ration.
Very diversified business operations with many revenue streams.

COMMENT

He prefers the large central banks. He feels that depositors will pull money out of regional banks and place it in the large mega banks even at lower rates.. This could lead to more centralization of the banks in the U.S.

DON'T BUY

Still working out regulatory issues on selling practices.
Constrained on how fast can grow balance sheet.
Would prefer shares in JP Morgan.
Would look elsewhere in the sector.

COMMENT
Enough of being in the penalty box. The current CEO is getting punished for the mistakes of the past CEO. Shares are slowly moving up, though its peers are outpacing it.
BUY
A longtime favourite. Bank earnings began today. Things are not as bad as the bears say they are. Higher interest rates have actually benefited the banks.
BUY
WFC vs. JPM Likes its relatively low book-to-value valuation compared to other large US banks. Yield is 2.78%. He likes JPM as well, but he really likes the value of WFC. You want to start to be overweight US and global financials. Improving macro picture, and you're not going to have a bull market without financials. See his Top Picks.
BUY
They report Friday. He's bullish the banks which will benefit from rate hikes. WF has the most room to run. He owns a large position.
DON'T BUY
Lots of regulatory pressure, which is good because they have to focus on their core business. Core business and valuation have continued to improve. Retail focused, very defensive. But his preference now in this environment is the Canadian banks.
BUY
Buying January 50 call options? That trade is a surefire loser, because it would need a monster rally in a short time. However, he likes WFC as an investment. Five years ago, shares traded around $65, now $42. Sell the calls and buy the common stock. You get a 2.8% dividend yield at least. Trades at 8x 2023 earnings. He owns a large position.
PAST TOP PICK
(A Top Pick Feb 14/22, Down 17%) They sold it in March along with everything else. It is executing well, trades at 8X and models 23% per share growth. He would buy now.
BUY
His biggest holding. They've made a great progress under the current CEO, though shares remain down this year. It's the best bank to own as the Fed aggressively hikes rates. They just reported a top and bottom line beat with a positive forecast. Net interest income is up 36% YTD, way outperforming expectations. The high yield curve lets WF to print money (and the other banks). They have the widest net interest margin among the big banks at 2.83% (JPM is 2.09% for example). This means huge money. WF is a turnaround story that's working. WF has cut back staff to lower costs while peers are hiring more. Also, WF has a lot less capital markets exposure, which is hurting its peers who have more. True, loan losses are rising, but still below the historic norm. They have room to buyback shares in 2023.
BUY
Reported an amazing quarter today with a top and bottom line beat, underlined by cutting costs and driven by rapidly rising net interest margins. They raised their full-year net interest income forecast at 24% growth. Consumer banking was solid though their mortgage business has been awful. They have more interest rate exposure than their peers. Net interest income was up 36% YOY, more than enough to offset bad loans. Their story will get better as rates rise.
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