NYSE:WFC

Wells Fargo (WFC)

90.29
+0.84 (0.94%)
as of Sep 11, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconSep 13, 2026, 12:00 am

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

Wells Fargo (WFC) is facing a mixed outlook according to various experts. While it has made progress post-cap restrictions and is showing some operational improvements, it still struggles with mid-tier performance metrics such as return on equity (ROE) and a high efficiency ratio. The bank's pricing has remained low compared to its peers, attributing this to ongoing management challenges and traditional lending methods that may not be keeping pace with industry trends. Recent earnings reports indicated a sales growth of 4.5% but a miss on earnings, primarily due to increased severance costs. Some analysts express concern about the bank's strategy of taking on more loans at a potentially risky time in the economic cycle and highlight a preference for competitors like JPMorgan and Morgan Stanley.

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Consensus
Cautious
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Valuation
Undervalued
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Similar
BMO, BMO
COMMENT

Not a fan of the US financials because interest rates are going lower. They're buying treasuries and loan books are down. They're getting squeezed in the margins. JP Morgan and Citi beat expectations since it's been a pretty good year for the stock market.

HOLD

He owns Citi instead. His model price is $45.84, above the current stock price. JP Morgan is the best in this space. Continue to hold WFC. This will continue sideways.

TOP PICK
It is a money-centered, large bank in the US. It was an amazing bank but in recent years they got caught cross selling things to people that they should not have. They had a change in management. He hopes earnings growth will start again under this new management. (Analysts’ price target is $49.80)
DON'T BUY
US banks have popped in last few days. He's underweight US banks. Still reeling from accounting scandal. Technicals are weak. Barely above the 200-day moving average. Flattening yield curve affecting it negatively. Net interest margins are weak. Value play, dividend is nice. Growth and total return weak.
DON'T BUY

It had issues with management. The US banking sector has been under pressure from the interest rate side. It is not a sector he is diving into. MS-N has the wealth management part of the business.

HOLD
Every bank will struggle in a flat yield curve as they borrow short term and lend long term. They also have other products to help against this. WFC-N has made some mistakes that has gotten them in trouble, but they will need a new CEO to change favour. They hold it and will continue to do so.
TOP PICK
He likes that there is still a dark cloud hanging over them -- a contrarian pick. They currently are without a CEO, but that will get resolved in the near future. Yield 3.78% (Analysts’ price target is $51.48)
TOP PICK
True, they're under a lot of scrutiny and are looking for a new CEO, but they have an excellent capital position and just passed their stress test. They've raised their dividend and he expects them to raise it by 10%. They just announced 11% stock buybacks. This will support the stock price. They won't get hurt as much by the squeezed margins on the yield curve. (Analysts’ price target is $51.48)
COMMENT

There continues to be a hangover over the falsification of client records a few years ago for WFC-N. It will go away over time and Warren Buffet still owns his shares. He would tie into a higher yield play. He would lean towards Bank of America.

DON'T BUY
Don't buy any US stocks for the dividend--you get taxed and suffer currency fluctuation. But he likes US banks because there's growth. That said, he wouldn't buy WFC.
HOLD
Dividend safe? He bought this when it was under temporary trouble last year. It was involved in front running customers and other issues and still do face sanctions. It sells at a discount to other US banks. The dividend is safe, he thinks. Not much downside here.
DON'T BUY
BAC vs. WFC He sold WFC after briefly owning it, after hearing of its corporate malfeasance. Since, then, WF stock price has treaded water. The US Fed did an about-face by saying they will keep rates flat. So, he pared down his US bank holdings including BAC.
SELL
There are more issues with this one than the others. The Fed is now monitoring them and have them under restrictions. He sold within 10 days of the news items about the pervasiveness of the problems. There are other companies you can go to that don’t present the issues this one does.
COMMENT
BAC vs. Wells Fargo Both are well-run, with BAC trading at a slightly lower multiple, so he favours BAC. Also, Wells has a scandal to still deal with it and management issues, which is why he's stayed away from it. A rising yield curve boosts all the US banks, so that's's now a headwind as rate increases slow down. Both benefit from a strong US economy.
DON'T BUY
This is lagging their peers in the US financial space. If interest rates increase, earnings will grow. He thinks their reputation still needs some improving before it brings back investors.
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