With shares of Wells Fargo & Company (NYSE:WFC) trading at $32.98 is WFC an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
Wells Fargo doesn’t make as many headlines as Bank of America Corporation (NYSE:BAC) or Citigroup (NYSE:C). In many industries, that would be looked at as a negative. In the drama-filled world of U.S. banks, this should be looked at as a positive.
Wells Fargo has been one of the most conservative and responsible banks for many years. This company believes in lending like a traditional bank opposed to high-risk exotic schemes with a get-rich-quick appeal.
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When it comes to companies like Bank of America and Citigroup, it appears as though both situations have been turned around, and that’s likely to be the case, but we don’t really know for sure. There are always whispers about insolvency. These are most likely just rumors, but do you really want to take that chance as an investor? When it comes to Wells Fargo, you don’t have to worry about it; you can sleep at night.
Legendary investors Warren Buffett and Kenneth L. Fisher both have large stakes in Wells Fargo. Warren Buffett often states it’s his favorite bank, and Ken Fisher owns 18.6 million shares in Wells Fargo.
The positives don’t end there. Wells Fargo offers a 2.70% yield and has a Forward P/E of 9.06. In regards to analysts, 24 recommend Buy, 11 recommend Hold, and only one recommends Sell. Let’s take a look at a few more numbers.