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Jul 16, 2022
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Wells Fargo (WFC, $41.13) misses Q2 earnings expectations

Wells Fargo (WFC, $41.13) misses Q2 earnings expectations

Wells Fargo reported second quarter earnings that were below the Street expectations.

The bank’s earnings for the three months ending in June fell -46.45 from the year-ago quarter to 74 cents per share, compared to the Street consensus forecast of 80 cents per share.

Revenues plunged -16% to $17.028 billion.  

Wells Fargo set aside $580 million to cover potential bad loans. In the same period last year, it released around $1.26 billion in loan reserves.

CEO Charlie Scharf said, "While our net income declined in the second quarter, our underlying results reflected our improving earnings capacity with expenses declining and rising interest rates driving strong net interest income growth."

Scharf also mentioned that the company’s results should continue to benefit from the rising interest rate environment, expecting  net interest income growth to more than offset any further near-term pressure on noninterest income. "We do expect credit losses to increase from these incredibly low levels, but we have yet to see any meaningful deterioration in either our consumer or commercial portfolios," Scharf mentioned.

Related Ticker: WFC

WFC in upward trend: price rose above 50-day moving average on November 02, 2026

WFC moved above its 50-day moving average on November 02, 2026 date and that indicates a change from a downward trend to an upward trend. In 31 of 38 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 82%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on November 02, 2026. You may want to consider a long position or call options on WFC as a result. In 49 of 72 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 68%.

The Moving Average Convergence Divergence (MACD) for WFC just turned positive on October 09, 2026. Looking at past instances where WFC's MACD turned positive, the stock continued to rise in 27 of 46 cases over the following month. The odds of a continued upward trend are 59%.

The 10-day moving average for WFC crossed bullishly above the 50-day moving average on November 06, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 78%.

Following a +2.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where WFC advanced for three days, in 206 of 334 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.

The Aroon Indicator entered an Uptrend today. In 154 of 269 cases where WFC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 57%.

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 of 69 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 62%.

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 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.

WFC broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron SMR rating for this company is 2 (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 17 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 20, placing this stock better than average.

The Tickeron Price Growth Rating for this company is 48 (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 Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Valuation Rating of 64 (best 1 - 100 worst) indicates that the company is fair valued 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 (1.540) is normal, around the industry mean (1.500). P/E Ratio (12.060) is within average values for comparable stocks, (11.703). Projected Growth (PEG Ratio) (1.264) is also within normal values, averaging (2.139). Dividend Yield (0.024) settles around the average of (0.035) among similar stocks. P/S Ratio (3.144) is also within normal values, averaging (3.867).

The Tickeron PE Growth Rating for this company is 64 (best 1 - 100 worst), pointing to average 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.

Notable companies

The most notable companies in this group are JPMorgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), HSBC Holdings PLC (NYSE:HSBC), Wells Fargo & Co (NYSE:WFC), Citigroup (NYSE:C), Barclays PLC (NYSE:BCS).

Industry description

Major banks are among the biggest companies in the world, often times with global reach and market capitalizations in the multi-billions. Large banks often have multiple arms spanning different disciplines, from deposits, to investment banking, to wealth management and insurance. The biggest banks often have key competitive advantages over smaller players in the industry in terms of brand recognition, cost of capital, and efficiency. Think J.P. Morgan, Bank of America, Wells Fargo, and Citigroup.

Market Cap

The average market capitalization across the Major Banks Industry is 195.36B. The market cap for tickers in the group ranges from 1.04M to 889.14B. JPM holds the highest valuation in this group at 889.14B. The lowest valued company is BACRP at 1.04M.

High and low price notable news

The average weekly price growth across all stocks in the Major Banks Industry was -1%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 12%. SAN experienced the highest price growth at 11%, while FRBT experienced the biggest fall at -1%.

Volume

The average weekly volume growth across all stocks in the Major Banks Industry was -37%. For the same stocks of the Industry, the average monthly volume growth was -26% and the average quarterly volume growth was -31%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 59
P/E Growth Rating: 53
Price Growth Rating: 48
SMR Rating: 4
Profit Risk Rating: 20
Seasonality Score: 37 (-100 ... +100)
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published General Information

General Information

a major bank

Industry MajorBanks

Industry
Major Banks
Address
333 Market Street
Phone
+1 415 371-2921
Employees
205000
Web
https://www.wellsfargo.com
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