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NYSE:WFC

Wells Fargo (WFC)

84.72
+0.88 (1.05%)
as of Aug 24, 2026, 8:00:00 pm Market Open.
241 watching
0
Investor Insights
star iconAug 24, 2026, 12:00 am

This summary was created by AI, based on 9 opinions in the last 12 months.

Wells Fargo (WFC) has been facing challenges that have affected its performance compared to its peers. While it is seen as a traditionally undervalued bank, experts express concerns over its riskier credit profile and higher non-performing loan ratios, which could impact future earnings. Management issues have also plagued the bank over the years, leading to a lack of investor confidence. Although the removal of a cap on its balance sheet has allowed for some improvement, there is a sentiment that the overall consistency in execution remains a significant hurdle. The recent earnings report showed a top and bottom line miss, raising questions about its ability to meet market expectations in the near term, although some believe in the long-term turnaround under capable leadership. Experts recommend caution due to a higher efficiency ratio and competition from stronger performers in the banking sector.

consensus icon
Consensus
Cautious
valuation icon
Valuation
Undervalued
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SELL
Low interest rate is challenging. Stock's had a good run. Take profits. Economy slowing. Not right time of the cycle to be aggressive with your bank positions. Their bread and butter is lending, and the Fed has capped their loan book as a penalty. Look elsewhere.
WEAK BUY
A cautious buy, given the regulatory overhang which throws up too much of a grey area.
HOLD
It's the worst among the US banks and he wonders why Warren Buffet held onto this for so long. These days, it's a turnaround story, and he believes in the current CEO. He's bought back a lot of stock and gotten new board members. He expects this to return to the high-$50s. Otherwise, hold on.
DON'T BUY
In the penalty box for a number of years due to regulatory issues. He prefers other banks.
BUY
It's a textbook turnaround story and a cheap stock. All the banks were up a lot this year. They delivered good numbers, and yet still sold during last week's earnings reports. An investment bank enjoying a booming IPO and M&A businesses, even as their trading business fell off in recent months. Wells shares are up 45% YTD. They reported a massive earnings and sales beat, boosted by a one-off $1.6 billion reserve release. WF actually missed net interest income and reported lower loan balances YOY. Their efficiency ratio came in at 66%. The CEO is just getting started on cutting costs. Last week, WF says it will buy back a lot more shares. Buy, especially at $43.
COMMENT
They report Wednesday. next week. It's a turnaround story. If the CEO tells a good story about the turn, then the stock could make new highs this year.
DON'T BUY

She owned Wells Fargo years ago until problems with their sales practices arose. That's now behind them, but WF lost momentum and they need to prove to investors that they can gain market share.

COMMENT

A turnaround play. The big catalyst that is coming up is the restrictions put on the company. It should come off later in the year. CitiGroup is also another good choice. They can increase their dividends and start buybacks once rules change.

BUY
Buy more. The CEO is solid. This is the cheapest American bank.
BUY
US banks are great, one of the top performing industries in the S&P. WFC has a great valuation, trading around book value, and it didn't do that great in 2020.
BUY
Economic activity is pushing up long-term rates as the Fed restrains long-term rates. This results in a rising yield curve, which swells the bottom line of banks. WFC is the cheapest of the banks. Good CEO, too.
DON'T BUY
Have avoided it and owns other US banks. They are still dealing with their scandal and related issues which continue to dog the company. Surprised that the company hasn't moved on faster from these issues to rebuild earnings. They have cut dividends when peers have raised them. There is no question they will turnaround, the question is when.
TOP PICK
Outlook on banks has become quite bullish. Vaccine rollout, fiscal stimulus, steepening yield curve. Loan demand should climb, and loan defaults should shrink. Should see more share buybacks and higher dividends. Trades below tangible book value. New management is focusing on moving past legal troubles. Yield is 1.18%. (Analysts’ price target is $35.27)
BUY
They boast a smart CEO, and a tailwind is the SEC allowing US banks to do share buybacks again. Banks will jump on Monday.
DON'T BUY

He owned it 5 or 6 years ago. The space in general is facing a lot of longer term headwinds. There is increased regulatory scrutiny facing the sector. There are places in the financial space he likes better. Warren Buffet has trimmed his position in the financials. The guest likes EVR-N. It is a pure play and a higher return on equity.

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