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
BUY
US banks Net interest income from rising rates will be a boost. But mortgages and investment trading revenues will be horrible. The banks are trading at cheap valuations now, but when they report Friday they won't be clean quarters. Wells' mortgage business is significant, but WF has been shrinking it for the past 18 months and are the most sensitive to interest rates, so a rise will increase their margins.
HOLD
He likes US banks. WFC has been relatively stable during volatility. Good overall. Look through the next 6-9 months. Is fine to hold.
BUY
Owns Wells Fargo and JPM. Citi did very well with new branded card revenues up 18%, but WF's mortgage banking revenues down 80%. This means that small-ticket items are still intact, while big-ticket is faltering. Consumers are spending with their credit cards. JPM's capital market investment banking revenues were down 32%. The banks are all building big reserves against mortgage defaults. Wells remains a turnaround story, but it trades at less than 1x book, so its metrics are attractive. It's not a value trap; management is good.
BUY ON WEAKNESS
They report Friday. They sold off hard after their last quarter because of weak growth and higher expenses which infuriated him. WF says it is still working through regulatory issues. They're under pressure. He can't believes shares are so low. At this price, there's little to lose and a lot more to gain.
DON'T BUY
Penalty box from regulators. Better places to be. Struggling, margins and earnings are down, losing key personnel.
TOP PICK
Thinks financial sector is well positioned with rising interest rates. Current share price is presenting buying opportunity. One of the largest banks in the USA. 100% of revenues are derived from USA New leadership that is preforming well. As economy recovers from Covid-19, business will increase. Expects dividend yield to increase along with share buybacks.
WAIT
WFC vs. JPM Neither stands out over the other. JPM is 10x earnings, whereas WFC is 10.7x. Problem is that rising interest rates by themselves don't mean bigger profits. Wants to see stability in the yield curve, as it's flattened quite quickly. Needs to see fund flows get better before buying.
TOP PICK
Balance sheet most leveraged to higher interest rates. Credit quality rising. Reducing inefficiency and still investing in company. Still well priced and with 20% growth rate. Buy 20, Hold 8, Sell 0. (Analysts’ price target is $62.92)
COMMENT

Question about American bank stocks. Be selective and don't buy the ETF. He owned Wells Fargo before but he switched to JPM. There has been negative news. The stock is now looking better and with the positive changes being made it could grow back. Looks undervalued.

HOLD
Believes financial stocks are going to do well with rising interest rates. Hold the stock if you own it.
PAST TOP PICK
(A Top Pick Jan 13/20, Up 68%) 1.3x price to book, discount to peer group. High growing dividend. Recovering economy around the world, lower credit loss provisions, higher interest rates will all help the banking sector. Yield is 1.4%.
BUY ON WEAKNESS
Earnings season really begins next Friday. 2022 could be their best year since 2017. It has rallied the past week to a 52-week high, up 1% in the past week, so he doubts it can keep rising. Buy on a pullback.
SHORT
With the yield get back to 4%? He would remain being a seller based on the nefarious things they did a few years ago. There is much better value in its competitors.
BUY
It's the worst of the big banks, but he owns this because it's a turnaround story. It trades cheaply. Shares jumped nearly 7% today. The CEO is turning it around.
BUY ON WEAKNESS
They report Thursday. WF numbers won't be as bad as they used to be. The banks have had a huge run-up, but are still behind the overall market's PE. If this gets hit week, he will buy more.
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