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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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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