The company's fundamentals are relatively stable. Its valuation is considered fairly valued,and institutional recognition is very high. Over the past 30 days, multiple analysts have rated the company as a Buy. Despite an average stock market performance, the company shows strong technicals. The stock price is trading sideways between the support and resistance levels, making it suitable for range-bound swing trading.
Wells Fargo & Company is an American multinational financial services corporation with a significant global footprint. Operating in 35 countries, the company serves over 70 million clients worldwide. Recognized as a systemically important financial institution by the Financial Stability Board, it is considered one of the "Big Four Banks" in the United States, alongside JPMorgan Chase, Bank of America, and Citigroup.
The primary subsidiary of the company is Wells Fargo Bank, N.A., a national bank that designates its main office at its Sioux Falls, South Dakota location. It ranks as the fourth-largest bank in the United States by total assets and also stands out as one of the largest banks based on deposits and market capitalization. With a network of 8,050 branches and 13,000 automated teller machines, as well as 2,000 stand-alone mortgage branches, it is the second-largest retail mortgage originator in the U.S., responsible for originating one out of every four home loans, and services $1.8 trillion in home mortgages, making it one of the largest servicing portfolios in the nation. Additionally, it is recognized as one of the most valuable banking brands, ranking 47th on the Fortune 500 list of the largest U.S. companies.
Beyond traditional banking, Wells Fargo offers equipment financing through subsidiaries like Wells Fargo Rail and provides investment management and brokerage services. A core aspect of Wells Fargo's business approach is cross-selling, which involves encouraging existing customers to acquire additional banking services. This strategy led to the infamous Wells Fargo cross-selling scandal.
The company maintains international offices in cities including London, Dublin, Paris, Milan, Dubai, Singapore, Tokyo, Shanghai, Beijing, and Toronto, among others. Its back-office operations are located in India and the Philippines, employing more than 20,000 staff. Notably, Wells Fargo is the first major national U.S. bank to successfully undergo a unionization effort. As of 2024, 20 branch locations have joined Wells Fargo Workers United-CWA, a division of the Communications Workers of America, within less than a year.
Wells Fargo operates under Charter No. 1, the first national bank charter issued in the United States, which was granted to the First National Bank of Philadelphia on June 20, 1863, by the Office of the Comptroller of the Currency. The current entity known as Wells Fargo is the result of a merger between the original Wells Fargo & Company and Norwest Corporation, based in Minneapolis, in 1998. Following the merger, the combined company adopted the more recognizable Wells Fargo name and relocated to the Wells Fargo headquarters in San Francisco. At that time, Norwest’s banking subsidiary merged with Wells Fargo’s Sioux Falls-based banking unit, allowing Wells Fargo to become a coast-to-coast bank with the acquisition of Wachovia, based in Charlotte, in 2008.
The company's current financial score is 4.21, which is lower than the Banking Services industry's average of 7.04. Its financial status is weak, and its operating efficiency is low. Its latest quarterly revenue reached 20.13B, representing a year-over-year decrease of 0.91%, while its net profit experienced a year-over-year decrease of 12.37%.
Key Metrics
The company’s current valuation score is 8.94, which is higher than the Banking Services industry's average of 7.68. Its current P/E ratio is 13.17, which is 20.70% below the recent high of 15.89 and 38.20% above the recent low of 8.14.
The company’s current earnings forecast score is 7.54, which is higher than the Banking Services industry's average of 7.40. The average price target for Wells Fargo & Co is 90.00, with a high of 100.00 and a low of 75.00.
Data disclaimer: Analyst ratings and target prices are provided by LSEG for informational purposes only and do not constitute investment advice.
The company’s current price momentum score is 6.55, which is lower than the Banking Services industry's average of 6.62. Sideways: Currently, the stock price is trading between the resistance level at 83.64 and the support level at 74.61, making it suitable for range-bound swing trading.
The Indicators feature provides value and direction analysis for various instruments under a selection of technical indicators, together with a technical summary.
This feature includes nine of the commonly used technical indicators: MACD, RSI, KDJ, StochRSI, ATR, CCI, WR, TRIX and MA. You may also adjust the timeframe depending on your needs.
Please note that technical analysis is only part of investment reference, and there is no absolute standard for using numerical values to assess direction. The results are for reference only, and we are not responsible for the accuracy of the indicator calculations and summaries.
The company’s current institutional recognition score is 7.00, which is higher than the Banking Services industry's average of 5.34. The latest institutional shareholding proportion is 79.09%, representing a quarter-over-quarter decrease of 1.26%. The largest institutional shareholder is The Vanguard, holding a total of 300.71M shares, representing 9.39% of shares outstanding, with 2.75% increase in holdings.
The company’s current risk assessment score is 9.25, which is higher than the Banking Services industry's average of 6.61. The company's beta value is 1.22. This indicates that the stock tends to outperform the index during upward trending markets but experiences larger declines during downward trending markets.
