Is Wells Fargo Stock a Good Investment?
Wells Fargo Investment Advice | WFC |
- Examine Wells Fargo's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Wells Fargo's leadership team and their track record. Good management can help Wells Fargo navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Banks space and any emerging trends that could impact Wells Fargo's business and its evolving consumer preferences.
- Compare Wells Fargo's performance and market position to its competitors. Analyze how Wells Fargo is positioned in terms of product offerings, innovation, and market share.
- Check if Wells Fargo pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Wells Fargo's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Wells Fargo stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Wells Fargo is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Wells Fargo Stock
Researching Wells Fargo's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 77.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.56. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Wells Fargo last dividend was issued on the 8th of November 2024. The entity had 2:1 split on the 14th of August 2006.
To determine if Wells Fargo is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Wells Fargo's research are outlined below:
| Wells Fargo has a strong financial position based on the latest SEC filings | |
| Over 77.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from thelincolnianonline.com: Acquisition by Garcia Fabian T of 100 shares of Wells Fargo subject to Rule 16b-3 |
Wells Fargo uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Wells Fargo. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Wells Fargo's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 12th of April 2024 Upcoming Quarterly Report | View | |
| 12th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 10th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Wells Fargo's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Wells Fargo's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2001-07-17 | 2001-06-30 | 0.01 | -0.0265 | -0.0365 | 365 | ||
2010-07-21 | 2010-06-30 | 0.48 | 0.55 | 0.07 | 14 | ||
2022-04-14 | 2022-03-31 | 0.8 | 0.88 | 0.08 | 10 | ||
2008-10-15 | 2008-09-30 | 0.41 | 0.49 | 0.08 | 19 | ||
2010-01-20 | 2009-12-31 | -0.01 | 0.08 | 0.09 | 900 | ||
2024-01-12 | 2023-12-31 | 1.17 | 1.29 | 0.12 | 10 | ||
2022-01-14 | 2021-12-31 | 1.13 | 1.25 | 0.12 | 10 | ||
2024-04-12 | 2024-03-31 | 1.11 | 1.26 | 0.15 | 13 |
Know Wells Fargo's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Wells Fargo is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Wells Fargo backward and forwards among themselves. Wells Fargo's institutional investor refers to the entity that pools money to purchase Wells Fargo's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Norges Bank | 2024-06-30 | 45 M | State Farm Mutual Automobile Ins Co | 2024-09-30 | 43.6 M | Amvescap Plc. | 2024-06-30 | 38 M | Ameriprise Financial Inc | 2024-06-30 | 35.9 M | Primecap Management Company | 2024-09-30 | 32 M | Northern Trust Corp | 2024-09-30 | 31 M | Arrowstreet Capital Limited Partnership | 2024-06-30 | 30.2 M | Nuveen Asset Management, Llc | 2024-06-30 | 29.2 M | Legal & General Group Plc | 2024-06-30 | 24.2 M | Vanguard Group Inc | 2024-09-30 | 307 M | Blackrock Inc | 2024-06-30 | 254 M |
Wells Fargo's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 257.54 B.Market Cap |
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Wells Fargo's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.01 | |
| Return On Capital Employed | 0.03 | 0.03 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | 0.10 | 0.15 |
Determining Wells Fargo's profitability involves analyzing its financial statements and using various financial metrics to determine if Wells Fargo is a good buy. For example, gross profit margin measures Wells Fargo's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Wells Fargo's profitability and make more informed investment decisions.
Please note, the presentation of Wells Fargo's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Wells Fargo's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Wells Fargo's management manipulating its earnings.
Evaluate Wells Fargo's management efficiency
At present, Wells Fargo's Return On Assets are projected to slightly decrease based on the last few years of reporting. The current year's Return On Equity is expected to grow to 0.15, whereas Return On Capital Employed is forecasted to decline to 0.03. At present, Wells Fargo's Other Current Assets are projected to decrease significantly based on the last few years of reporting. The current year's Intangible Assets is expected to grow to about 11.6 B, whereas Total Assets are forecasted to decline to about 979.5 B. Wells Fargo's management efficiency ratios could be used to measure how well Wells Fargo manages its routine affairs as well as how well it operates its assets and liabilities.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 50.82 | 53.36 | |
| Tangible Book Value Per Share | 41.69 | 43.77 | |
| Enterprise Value Over EBITDA | 5.87 | 5.58 | |
| Price Book Value Ratio | 0.98 | 0.93 | |
| Enterprise Value Multiple | 5.87 | 5.58 | |
| Price Fair Value | 0.98 | 0.93 | |
| Enterprise Value | 296.9 B | 311.8 B |
The strategic decisions made by Wells Fargo management significantly impact its financial stability and market performance. Evaluating these factors helps determine whether the stock is a worthwhile investment.
Dividend Yield 0.0207 | Forward Dividend Yield 0.0207 | Forward Dividend Rate 1.6 | Beta 1.136 |
Basic technical analysis of Wells Stock
As of the 28th of November, Wells Fargo maintains the Mean Deviation of 1.52, market risk adjusted performance of 0.2465, and Downside Deviation of 1.78. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Wells Fargo, as well as the relationship between them.Wells Fargo's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Wells Fargo insiders, such as employees or executives, is commonly permitted as long as it does not rely on Wells Fargo's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Wells Fargo insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Wright Michael W over a year ago Purchase by Wright Michael W of 7500 shares of Wells Fargo |
Wells Fargo's Outstanding Corporate Bonds
Wells Fargo issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Wells Fargo uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Wells bonds can be classified according to their maturity, which is the date when Wells Fargo has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| WELLS FARGO NEW Corp BondUS949746SH57 | View | |
| US949746TB78 Corp BondUS949746TB78 | View | |
| US949746TD35 Corp BondUS949746TD35 | View | |
| WELLS FARGO NEW Corp BondUS94974BFP04 | View | |
| WELLS FARGO NEW Corp BondUS94974BGE48 | View | |
| WELLS FARGO NEW Corp BondUS94974BGH78 | View | |
| WELLS FARGO NEW Corp BondUS94974BFY11 | View | |
| WELLS FARGO NEW Corp BondUS94974BGT17 | View |
Understand Wells Fargo's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Wells Fargo's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1679 | |||
| Market Risk Adjusted Performance | 0.2465 | |||
| Mean Deviation | 1.52 | |||
| Semi Deviation | 1.31 | |||
| Downside Deviation | 1.78 | |||
| Coefficient Of Variation | 474.68 | |||
| Standard Deviation | 2.41 | |||
| Variance | 5.8 | |||
| Information Ratio | 0.1565 | |||
| Jensen Alpha | 0.2441 | |||
| Total Risk Alpha | 0.118 | |||
| Sortino Ratio | 0.2122 | |||
| Treynor Ratio | 0.2365 | |||
| Maximum Drawdown | 16.76 | |||
| Value At Risk | (2.18) | |||
| Potential Upside | 3.6 | |||
| Downside Variance | 3.15 | |||
| Semi Variance | 1.72 | |||
| Expected Short fall | (1.76) | |||
| Skewness | 2.16 | |||
| Kurtosis | 11.16 |
| Risk Adjusted Performance | 0.1679 | |||
| Market Risk Adjusted Performance | 0.2465 | |||
| Mean Deviation | 1.52 | |||
| Semi Deviation | 1.31 | |||
| Downside Deviation | 1.78 | |||
| Coefficient Of Variation | 474.68 | |||
| Standard Deviation | 2.41 | |||
| Variance | 5.8 | |||
| Information Ratio | 0.1565 | |||
| Jensen Alpha | 0.2441 | |||
| Total Risk Alpha | 0.118 | |||
| Sortino Ratio | 0.2122 | |||
| Treynor Ratio | 0.2365 | |||
| Maximum Drawdown | 16.76 | |||
| Value At Risk | (2.18) | |||
| Potential Upside | 3.6 | |||
| Downside Variance | 3.15 | |||
| Semi Variance | 1.72 | |||
| Expected Short fall | (1.76) | |||
| Skewness | 2.16 | |||
| Kurtosis | 11.16 |
Consider Wells Fargo's intraday indicators
Wells Fargo intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Wells Fargo stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Wells Fargo Corporate Filings
| 25th of November 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify | |
| 13th of November 2024 Other Reports | ViewVerify | |
13A | 12th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
10Q | 31st of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Wells Stock media impact
Far too much social signal, news, headlines, and media speculation about Wells Fargo that are available to investors today. That information is available publicly through Wells media outlets and privately through word of mouth or via Wells internal channels. However, regardless of the origin, that massive amount of Wells data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Wells Fargo news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Wells Fargo relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Wells Fargo's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Wells Fargo alpha.
Wells Fargo Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Wells Fargo can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Wells Fargo Historical Investor Sentiment
Investor biases related to Wells Fargo's public news can be used to forecast risks associated with an investment in Wells. The trend in average sentiment can be used to explain how an investor holding Wells can time the market purely based on public headlines and social activities around Wells Fargo. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Wells Fargo's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Wells Fargo and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Wells Fargo news discussions. The higher the estimate score, the more favorable the investor's outlook on Wells Fargo.
Wells Fargo Corporate Directors
| Mark Chancy | Independent Director | Profile | |
| Donald James | Independent Director | Profile | |
| Ronald Sargent | Independent Director | Profile | |
| Theodore Craver | Independent Director | Profile |
Already Invested in Wells Fargo?
The danger of trading Wells Fargo is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Wells Fargo is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Wells Fargo. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Wells Fargo is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Wells Fargo offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Wells Fargo's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Wells Fargo Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Wells Fargo Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Wells Fargo. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census. For information on how to trade Wells Stock refer to our How to Trade Wells Stock guide.You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wells Fargo. If investors know Wells will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wells Fargo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.04) | Dividend Share 1.45 | Earnings Share 4.81 | Revenue Per Share 22.23 | Quarterly Revenue Growth (0.02) |
The market value of Wells Fargo is measured differently than its book value, which is the value of Wells that is recorded on the company's balance sheet. Investors also form their own opinion of Wells Fargo's value that differs from its market value or its book value, called intrinsic value, which is Wells Fargo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wells Fargo's market value can be influenced by many factors that don't directly affect Wells Fargo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Wells Fargo's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Wells Fargo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wells Fargo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.