Wells Fargo: Decent Prospects, But Don’t Get Carried Away At These Levels


  • Wells Fargo stock has outperformed its peers and a diversified portfolio of banking stocks, generating returns of over 56% in the past year.
  • Non-interest income growth is expected to be resilient (currently growing at a run rate of 17%) while headcount and branch adjustments could reflect well on the cost base.
  • WFC may get an opportunity to expand its asset base from FY25, and going by sell-side estimates, the expectation is for higher earnings growth over each of the next 3 years.
  • WFC’s valuations look pricey, its yield looks unappealing, and the risk-reward on the charts does not look too favorable.

Wells Fargo branch in SOMA district

Sundry Photography

Solid Alpha, Despite NII Weakness

Over the past year, the stock of Wells Fargo (NYSE:WFC), the third-largest bank in the US by market cap, has done exceedingly well for its stakeholders by generating returns of

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.

Leave a Reply

Your email address will not be published. Required fields are marked *