Is Wells Fargo Stock a Good Investment?

Wells Fargo Investment Advice

  WFC
To provide specific investment advice or recommendations on Wells Fargo stock, we recommend investors consider the following general factors when evaluating Wells Fargo. This will help you to make an informed decision on whether to include Wells Fargo in one of your diversified portfolios:
  • 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
Macroaxis provides unbiased trade advice on Wells Fargo that should be used to complement current analysts and expert consensus on Wells Fargo. Our recommendation engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Wells Fargo is not overpriced, please check out all Wells Fargo fundamentals, including its price to book, total debt, number of employees, as well as the relationship between the ebitda and short ratio . Given that Wells Fargo has a number of shares shorted of 36.6 M, we strongly advise you to confirm Wells Fargo market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Market Performance

SolidDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

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 1.5. 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: Braze Issues Q4 2025 Earnings Guidance
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
2001-06-300.01-0.0265-0.0365365 
2010-07-21
2010-06-300.480.550.0714 
2022-04-14
2022-03-310.80.880.0810 
2008-10-15
2008-09-300.410.490.0819 
2010-01-20
2009-12-31-0.010.080.09900 
2024-01-12
2023-12-311.171.290.1210 
2022-01-14
2021-12-311.131.250.1210 
2024-04-12
2024-03-311.111.260.1513 

Wells Fargo Target Price Consensus

Wells target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Wells Fargo's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   24  Buy
Most Wells analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Wells stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Wells Fargo, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Wells Fargo Target Price Projection

Wells Fargo's current and average target prices are 72.62 and 50.61, respectively. The current price of Wells Fargo is the price at which Wells Fargo is currently trading. On the other hand, Wells Fargo's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Wells Fargo Market Quote on 10th of December 2024

Low Price72.42Odds
High Price74.55Odds

72.62

Target Price

Analyst Consensus On Wells Fargo Target Price

Low Estimate46.06Odds
High Estimate56.18Odds

50.61

Historical Lowest Forecast  46.06 Target Price  50.61 Highest Forecast  56.18
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Wells Fargo and the information provided on this page.

Wells Fargo Analyst Ratings

Wells Fargo's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Wells Fargo stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Wells Fargo's financials, market performance, and future outlook by experienced professionals. Wells Fargo's historical ratings below, therefore, can serve as a valuable tool for investors.

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
Morgan Stanley - Brokerage Accounts2024-09-30
41.7 M
Amvescap Plc.2024-09-30
37.2 M
T. Rowe Price Associates, Inc.2024-09-30
36.4 M
Primecap Management Company2024-09-30
32 M
Ameriprise Financial Inc2024-09-30
31.6 M
Northern Trust Corp2024-09-30
31 M
Nuveen Asset Management, Llc2024-09-30
29.8 M
Arrowstreet Capital Limited Partnership2024-09-30
25.1 M
Bank Of America Corp2024-09-30
24.1 M
Vanguard Group Inc2024-09-30
307 M
Blackrock Inc2024-06-30
254 M
Note, although Wells Fargo's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Wells Fargo's market capitalization trends

The company currently falls under 'Mega-Cap' category with a total capitalization of 241.79 B.

Market Cap

289.41 Billion

Wells Fargo's profitablity analysis

Last ReportedProjected 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 
The company has Net Profit Margin of 0.23 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.32 %, which entails that for every 100 dollars of revenue, it generated $0.32 of operating income.
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 Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Total Current Assets is expected to grow to about 388.7 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 ReportedProjected 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 Value296.9 B311.8 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
0.0215
Forward Dividend Yield
0.0215
Forward Dividend Rate
1.6
Beta
1.136

Basic technical analysis of Wells Stock

As of the 10th of December, Wells Fargo maintains the Market Risk Adjusted Performance of 0.2399, mean deviation of 1.49, and Downside Deviation of 1.54. 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.

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.

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.

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

9th of December 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 Fargo time-series forecasting models is one of many Wells Fargo's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Wells Fargo's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

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 ChancyIndependent DirectorProfile
Donald JamesIndependent DirectorProfile
Ronald SargentIndependent DirectorProfile
Theodore CraverIndependent DirectorProfile

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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.