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Valued at a market cap of $257.5 billion, San Francisco, California-based Wells Fargo & Company (WFC) is a leading financial services firm offering banking, investment, mortgage, and consumer and commercial finance products. It operates through its four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and Wells Fargo fits the criterion perfectly. WFC is a multinational financial services firm and one of the "Big Four Banks" in the U.S., serving over 70 million customers in 35 countries. Known for its vast branch network and being the first major U.S. bank to unionize successfully, it stands out for its cross-selling strategy and diverse financial services.
The biggest U.S. mortgage lender dropped 3.9% from its 52-week high of $81.50, recorded on Feb. 6, 2025. Over the past three months, its shares have gained 1.4%, outperforming the broader Dow Jones Industrials Average's ($DOWI) nearly 2% decline during the same period.
In the longer term, WFC has gained 11.5% on a YTD basis, outperforming DOWI’s 3.1% rise. Over the last 52 weeks, Wells Fargo & Company shares have climbed 43.1%, compared to the Dow Jones’ 12.6% return in the same period.
WFC has been trading above its 50-day and 200-day moving averages since October last year.
Shares of Wells Fargo rose 6.7% on Jan. 15 after reporting Q4 2024 adjusted EPS of $1.42, beating the consensus. Investor sentiment improved due to an 11% increase in non-interest income to $8.5 billion, driven by higher asset-based fees, investment banking revenue, and venture capital gains. The company’s efficiency ratio improved to 68%, reflecting better cost management, while non-interest expenses declined 12% to $13.9 billion. Additionally, Wells Fargo repurchased 57.8 million shares.
In comparison, rival Bank of America Corporation (BAC) also lagged behind WFC. Shares of BAC gained 34.4% over the past 52 weeks and 4.9% on a YTD basis.
Despite WFC’s strong price action over the past year, analysts remain cautiously optimistic about its prospects. Among the 25 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $84.08.
