Wells Fargo (WFC, $33.55) shares get rating upgrade from Jefferies analyst
Financial behemoth Wells Fargo shares got a rating boost to buy from hold, from Jefferies analyst Ken Usdin. He also raised his share price target to $38 a share from $26.
Calling Wells a " still-discounted turnaround story”, Usdin said that it is approaching a positive rate-of-change in many parts of the franchise. According to the analyst, Wells will be one of the few banks to show decreasing expenses for the next few years, regardless of the size and timing of a formalized cost plan.
The analyst expects the bank’s net interest income to stabilize at around fourth quarter 2020 levels, in part due to lower premium amortization and absence of hedge losses; but he still thinks that it will decline -5% to -6% in 2021.
Usdin said that while revenue has been challenge for Wells Fargo, comps should get better for many line items in 2021.
According to Usdin’s analysis, Wells Fargo’s stock valuation remains lowest in the group on both P/E and P/TBV (price to tangible book value), considering the recent and ongoing uncertainties. "We believe that WFC could close the gap somewhat as fundamental performance improves."
The analyst mentioned risks to his outlook, such as asset cap removal past 2021 which would add uncertainty about WFC's ability to grow its balance sheet.
WFC's RSI Oscillator leaves overbought zone
The 10-day RSI Oscillator for WFC moved out of overbought territory on May 20, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 instances where the indicator moved out of the overbought zone. In of the 43 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for WFC turned negative on May 22, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where WFC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on June 20, 2025. You may want to consider a long position or call options on WFC as a result. In of 81 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 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
WFC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 278 cases where WFC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 30, placing this stock 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. WFC’s price grows at a lower rate over the last 12 months as compared to 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 (0.958). P/E Ratio (11.928) is within average values for comparable stocks, (8.937). WFC's Projected Growth (PEG Ratio) (24.155) is very high in comparison to the industry average of (2.643). WFC has a moderately low Dividend Yield (0.023) as compared to the industry average of (0.053). P/S Ratio (2.595) is also within normal values, averaging (2.460).
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a major bank
Industry MajorBanks
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