WFC Stock Analysis — Wells Fargo
Sector: Financials
AI Verdict
Wells Fargo trades at 11.2x next year's earnings with 13.6% growth expected, which is cheap for a bank of this scale if its branch network keeps deposit costs low and credit quality holds up.
Competitive Moat
Wells Fargo operates one of the largest branch banking networks in the U.S., giving it sticky customer relationships and cheap deposit funding. Its scale and regulatory know-how create high barriers for new entrants in traditional banking.
Summary
Wells Fargo trades at just 11.2x next year's earnings with double-digit EPS growth expected, making it stand out among big banks.
Where It Stands
Wells Fargo is up 13.68% over the past year, trades at 11.2x forward earnings versus the sector median of 14x, and its RSI of 54.4 signals a neutral setup.
Key Metrics
- RSI: 54.4 — Neutral
- Trailing P/E: 12.7x
- Forward P/E: 11.2x
- PEG Ratio: 0.83
- Earnings Growth: +0.1%
- Revenue Growth: +0.7%
- Market Cap: $264.9B
- Dividend Yield: 0.02%
- 1-Year Return: 13.68%
- 52-Week High: $97.76
- 52-Week Low: $72.78
Analyst Consensus
20 Buy · 10 Hold · 0 Sell (30 analysts) · Target $98.00
Bull Case
Forward EPS is expected to grow 13.6% while the stock trades at only 11.2x those earnings, so you're paying less than the sector median for above-average growth.
Bear Case
If the P/E reverts to the sector median of 14x only after growth slows, any disappointment on the 13.6% EPS growth could trigger a derating and wipe out recent gains.
Catalyst to Watch
Quarterly earnings and credit quality updates—any miss on loan performance or guidance could change the growth narrative.