/Wells%20Fargo%20%26%20Co_%20ATM-by%20jetcityimage%20via%20iStock.jpg)
Wells Fargo & Company (WFC), with a market cap of $198.30 billion, stands as one of the premier financial services companies in the U.S. Headquartered in San Francisco, California, Wells Fargo offers an extensive array of banking, investment, and mortgage products and services for individuals, businesses, and institutions. With a robust network of branches and ATMs, Wells Fargo serves customers across diverse regions, including the West Coast, Midwest, and East Coast, solidifying its presence as a major player in the financial industry.
Shares of the financial services company have outperformed the broader market over the last year. WFC has gained 24.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19%. Also, in 2024, Wells Fargo stock rose 15.6%, surpassing SPX's 14.2% rise on a YTD basis.
Zooming in further, WFC's outperformance over the past 52 weeks also looks impressive compared to the S&P 500 Financials Sector SPDR's (XLF) 22.1% returns. Moreover, the stock's YTD gains outshine the exchange-traded fund's 14.7% returns over the same time frame.
On Jul. 12, WFC reported its Q2 results. Its EPS was $1.33, beating the consensus estimate of $1.27. Its revenue, net of interest expense, was $20.69 billion, higher than the Wall Street estimates of $20.27 billion. However, Wells Fargo’s stock declined approximately 6%, making it the biggest percentage loser on the S&P 500. The lender's Q2 results were adversely affected by higher-than-expected costs.
For the current fiscal year, ending in December, analysts expect WFC's EPS to decline marginally year over year to $5.14 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all the last four quarters.
Among the 26 analysts covering WFC stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings and 14 “Holds.”
On Jul. 30, Betsy Graseck from Morgan Stanley (MS) maintained a ‘Buy’ rating on Wells Fargo, with a price target of $68.00, implying a potential upside of 19.5% from current levels.
The mean price target of $63.03 represents a 10.8% premium to WFC’s current price levels. The Street-high price target of $70 suggests an upside potential of 23.1%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
