Wells Fargo reports Q4 earnings January 15

What's Happening With WFC View more about WFC >

Wells Fargo (WFC) joins the list of banks reporting earnings with its fourth-quarter report before the market opens January 15. The consensus calls for earnings of $1.17 per share, up a penny from the same period last year. WFC stock is down 15.65% since the end of June.

Technical Analysis

WFC was recently trading at $47.74 down $18.57 from its 12-month high and $4.72 above its 12-month low. InvestorsObserver’s Stock Score Report gives WFC a 37 long-term technical score and a 19 short-term technical score. The stock has recent support above $43 and recent resistance below $50. Of the 21 analysts who cover the stock 11 rate it Strong Buy, 1 rate it Buy, 7 rate it Hold, 0 rate it Sell, and 2 rate it Strong Sell, WFC gets a score of 43 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Wells Fargo was strong in 2017, having put most of its fraudulent account scandal behind it, but the stock has been weak over the last year with the overall financial sector, and shares are currently trading just above their 52-week low. Rising interest rates helped drive bank stocks higher for 2016 and 2017, but investors have become nervous that rates have risen to the point of jeopardizing the housing market, and that the trade war between the U.S. and China may lead to significant economic slowing moving forward. WFC posted weaker than expected earnings each of the last two quarters which has applied additional pressure to the stock and creates a situation where the market really needs to see an earnings beat for enthusiasm to return to the stock. The street is expecting a small beat for the quarter, with a whisper number of $1.20 versus the consensus $1.17 which puts additional pressure for a positive earnings surprise for the quarter. There is a lot of negative sentiment in the sector at this time, and the sector as a whole needs to show strength this earnings season to help shake investor fear of a possible global recession on the horizon. The stock has a low valuation with a forward P/E of just 9.4, so the downside is somewhat limited, but the entire sector is trading at low multiples so the valuation alone will not lead to a big jump in the stock on a positive earnings surprise. To see big gains in the stock, not only will Wells Fargo need to post a strong set of numbers, but the market will need to see the same from all the major banks that report early in the earnings season.

WFC
About Wells Fargo & Company

Wells Fargo is one of the largest banks in the United States, with approximately $2 trillion in balance sheet assets. The company is split into three segments for reporting purposes: community banking; wholesale banking; and wealth, brokerage, and retirement. The community banking segment serves consumers and small business with products including deposit accounts, credit and debit cards, student, mortgage, and home equity loans. Wholesale banking includes corporate and commercial real estate lending, asset-based lending and trade financing, merchant services, and capital markets businesses. Its wealth management segment includes advisory, brokerage, retirement, and trust services. The bulk of its lending takes place in the United States.

  • Last Price:
    $49.02
  • Previous Close:
    $49.56
  • Change:
    $-0.54 (-1.09%)
  • Open:
    $49.60
  • Volume:
    15,797,233
  • Average Volume (100 Day):
    23,183,738
  • Market Capitalization:
    $224.6 B
  • Day's Range:
    $48.95 - $49.75
  • Dividend Yield:
    3.63%
  • 52-week Range:
    $60 - $43.02
  • P-E:
    11.50
  • EPS:
    $4.28
  • Earnings Date:
    4/12/19
  • Ex Dividend Date:
    1/31/19
  • Sector:
    Financial Services
  • Industry:
    Banks - Global
  • Analyst Average Recommendation:
    Moderate Buy

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