Wells Fargo got its capital constraints relaxed by the Federal Reserve, so the bank can boost lending to small businesses amid COVID-19 crisis.
Last weekend, Wells had capped its lending to small business to $10 billion under the Paycheck Protection Program. The threshold was set by the bank so it could maintain the asset requirement that the Fed had imposed on it February 2018 after finding it guilty of setting up unauthorized accounts.
“Due to the extraordinary disruptions from the coronavirus,” the Fed said in a statement, “it will temporarily and narrowly modify the growth restriction on Wells Fargo so that it can provide additional support to small businesses.”
The Aroon Indicator for WFC entered a downward trend on April 17, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 181 similar instances where the Aroon Indicator formed such a pattern. In of the 181 cases the stock moved lower. This puts the odds of a downward move at .
The 10-day RSI Indicator for WFC moved out of overbought territory on March 22, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 61 cases where WFC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WFC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved above the 0 level on April 17, 2024. You may want to consider a long position or call options on WFC as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WFC advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WFC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.227) is normal, around the industry mean (0.945). P/E Ratio (11.928) is within average values for comparable stocks, (8.857). WFC's Projected Growth (PEG Ratio) (24.155) is very high in comparison to the industry average of (2.584). Dividend Yield (0.023) settles around the average of (0.100) among similar stocks. P/S Ratio (2.595) is also within normal values, averaging (2.430).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a major bank
Industry MajorBanks