#2 - Wells Fargo (NYSE:WFC)
Wells Fargo & Co. (NYSE: WFC) has been beset by a number of self-inflicted wounds in the past ten years. But the bank’s most recent earnings report showed that it remains well capitalized even as the bank sets aside more money in its loan-loss reserves. Like many banks, Wells Fargo anticipates that the economy may get worse before it gets better.
But with the stock trading for 7.8x forward earnings, investors are getting the stock at a slight discount to the overall sector. Analysts give WFC stock a moderate buy rating with a consensus price target of $52.09, a 37% gain from current levels.
One reason for that optimism may come from the company’s earnings. Even at the low end of its projected earnings, the company is expected to beat last year’s full-year earnings. Some of that optimism is based on the bank’s intention to dramatically shrink its mortage lending business as well as its entire lending portfolio.
About Wells Fargo & Company
Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. The company operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management.
Read More - Current Price
- $60.70
- Consensus Rating
- Hold
- Ratings Breakdown
- 7 Buy Ratings, 13 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $58.99 (2.8% Downside)
