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Wells Fargo & Company (WFC), headquartered in San Francisco, California, is a financial services company that provides diversified banking, investment, mortgage, and consumer and commercial finance products and services. With a market cap of $241.6 billion, the company serves physical stores, internet, and other distribution channels worldwide.
Shares of this leading financial services company have outperformed the broader market considerably over the past year. WFC has gained 77.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.5%. In 2024, WFC stock is up 47.5%, surpassing the SPX’s 25.5% rise on a YTD basis.
Zooming in further, WFC’s outperformance looks less pronounced compared to the SPDR S&P Bank ETF (KBE). The exchange-traded fund has gained about 64.6% over the past year. Moreover, WFC’s gains on a YTD basis outshine the ETF’s 32.2% returns over the same time frame.
WFC has seen strong price performance due to its expanded API portfolio for commercial banking clients, streamlining operations with the divestment of its non-agency third-party servicing segment to Trimont, and favorable market conditions supported by the Federal Reserve's interest rate-cuts. As markets hit all-time highs and the Fed initiates rate cuts, big banks like WFC stand to benefit from increased wealth management and investment banking activity. Moreover, improved capital ratios, decreased provisions, and higher non-interest income have also contributed to WFC's positive trends.
On Oct. 11, WFC shares closed up more than 5% after reporting its Q3 results. Its EPS stood at $1.42, down 4.1% year over year. The company’s revenue was $20.37 billion, falling short of Wall Street forecasts of $20.38 billion.
For the current fiscal year, ending in December, analysts expect WFC’s EPS to grow 4.3% to $5.39 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 24 analysts covering WFC stock, the consensus is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” and nine “Holds.”
This configuration is more bullish than two months ago, with 13 analysts suggesting a “Strong Buy.”
On Nov. 4, Barclays PLC (BCS) analyst Jason Goldberg maintained a “Buy” rating on WFC with a price target of $75, implying a potential upside of 3.3% from current levels.
While WFC currently trades above its mean price target of $67.09, the Street-high price target of $77 suggests an upside potential of 6.1%.
On the date of publication, Neha Panjwani 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.
