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NYSE:WFC

Wells Fargo (WFC)

82.40
+0.20 (0.24%)
as of Jun 18, 2026, 11:02:29 pm Market Open.
172 watching
0
BUY
Buy more. The CEO is solid. This is the cheapest American bank.
BUY
US banks are great, one of the top performing industries in the S&P. WFC has a great valuation, trading around book value, and it didn't do that great in 2020.
BUY
Economic activity is pushing up long-term rates as the Fed restrains long-term rates. This results in a rising yield curve, which swells the bottom line of banks. WFC is the cheapest of the banks. Good CEO, too.
DON'T BUY
Have avoided it and owns other US banks. They are still dealing with their scandal and related issues which continue to dog the company. Surprised that the company hasn't moved on faster from these issues to rebuild earnings. They have cut dividends when peers have raised them. There is no question they will turnaround, the question is when.
TOP PICK
Outlook on banks has become quite bullish. Vaccine rollout, fiscal stimulus, steepening yield curve. Loan demand should climb, and loan defaults should shrink. Should see more share buybacks and higher dividends. Trades below tangible book value. New management is focusing on moving past legal troubles. Yield is 1.18%. (Analysts’ price target is $35.27)
BUY
They boast a smart CEO, and a tailwind is the SEC allowing US banks to do share buybacks again. Banks will jump on Monday.
DON'T BUY

He owned it 5 or 6 years ago. The space in general is facing a lot of longer term headwinds. There is increased regulatory scrutiny facing the sector. There are places in the financial space he likes better. Warren Buffet has trimmed his position in the financials. The guest likes EVR-N. It is a pure play and a higher return on equity.

DON'T BUY
There are many questions about the planned turnaround and the CEO is too reluctanct to explain his plan.
DON'T BUY
Weakest of the big US money centre banks. A chequered recent last 10 years. 60% off of pre-pandemic highs. Hard to get behind them in this environment. Err to the side of safety and go with some of the more senior banks.
WAIT
Well run until the whole fiasco. Hasn't performed well from the March 23 bottom. The Fed has been pumping money in, but Wells doesn't have a capital market to benefit from this. It's more tied to the economy. Not a bad bet right now as a value play compared to its peers. Taking proactive steps to conserve cash. Wait on the banks overall.
COMMENT
US Banks? The big US banks have reported this week. All have pre-signalled what they expect loan losses from the pandemic to be. All the expected losses have been big, making this sector one he is suggesting patience with. He might suggest WFC as they have new executives in place. The company has been hurt and could be moving away from the issues dogging them in the past.
DON'T BUY
He does not own this one. It trades at about 0.6 times book value and has a great dividend. The market is telling you there are issues. Their sales methodology is a key concern. They are on the road to recovery. Retail banking will be tough as margins will be squeezed in a flat yield curve world. They also don't have the diversification of a larger global player. They are mostly a commercial retail bank. He doubts they will be able to grow organically like the other big US banks. Yield 7.8%
DON'T BUY

The very big picture is that we are around generational lows in interest rates. Coming out of this you may see the long end of the bond market selloff and this is good for banks. In terms of solvency issues coming out of COVID that would be a real risk. He bought two others as the market made a turn. In the last two weeks the banks gave up their gains. He is personally short WFC-N. It is now well below the lows. He believes the markets will correct but be careful of buying the weakest bank in the sector. JPM-N or C-N would be preferred to watch.

DON'T BUY
They did not have a good Q1 in earnings. Scandals are still hurting them. He questions how it is being managed. He would wait for better news. There are better US banks out there. Yield 8%
BUY ON WEAKNESS
All banks are down. This one is down 42% so far this year and could possibly go further. In the long term it is a bank that will continue to survive. Interest rates are going so low that they can't make a spread on the money they loan out. Banks are much better capitalized and in far better shape than in the financial crisis. It's going to hurt but you will look back in 5 years and say this was an opportunity.
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