Wells Fargo Stock Is Becoming Too Expensive (Rating Downgrade)

Summary:

• Wells Fargo & Company has substantially outperformed the market YTD, pushing up its valuation.
• The company maintains a strong portfolio of assets, but it’s still susceptible to customers demanding higher returns and declining Fed rates.
• The company will continue buying back stock and driving returns, but at its current valuation, WFC is simply too expensive.

Wells Fargo & Company (NYSE:WFC) is a name we’ve recommended several times before, most recently in late May, as we argued that the company’s asset cap and struggles were behind it. Since then, the company has returned more

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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