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Wells Fargo (WFC-N)
208 watching
NYSE:WFC
47.58
0.35
(0.74%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
Feb 3, 2023, 9:03 pm
0
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.
banks
$45.340
Owned
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.
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.
banks
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.
banks
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.
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.
banks
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.
banks
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.
banks
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.
banks
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.
banks
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.
banks
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.
banks
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.
banks
DON'T BUY
Penalty box from regulators. Better places to be. Struggling, margins and earnings are down, losing key personnel.
banks
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.
banks
Wells Fargo(WFC-N) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 10
Neutral - Hold Signals / Votes : 1
Bearish - Sell Signals / Votes : 2
Total Signals / Votes : 13
Wells Fargo(WFC-N) Frequently Asked Questions
What is Wells Fargo stock symbol?
Wells Fargo is a American stock, trading under the symbol WFC-N on the New York Stock Exchange (WFC). It is usually referred to as NYSE:WFC or WFC-N
Is Wells Fargo a buy or a sell?
In the last year, 13 stock analysts published opinions about WFC-N. 10 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Wells Fargo.
Is Wells Fargo a good investment or a top pick?
Wells Fargo was recommended as a Top Pick by on . Read the latest stock experts ratings for Wells Fargo.
Why is Wells Fargo stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Wells Fargo worth watching?
13 stock analysts on Stockchase covered Wells Fargo In the last year. It is a trending stock that is worth watching.
What is Wells Fargo stock price?
On 2023-02-03, Wells Fargo (WFC-N) stock closed at a price of $47.58.
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