Wells Fargo (WFC, $42.12) would stop offering personal lines of credit
Wells Fargo announced that it would stop offering personal lines of credit and is shutting those current accounts.
The product allowed users to borrow between $3,000 and $100,000, and was intended to consolidate higher-interest credit-card debt, pay for home renovations and avoid overdraft fees on linked accounts.
"Wells Fargo recently reviewed its product offerings and decided to discontinue offering new Personal and Portfolio line of credit accounts and close all existing accounts,” the bank said in a six-page letter (ass reported by CNBC).
In 2018, the Fed imposed caps on Wells Fargo balance sheet until it fixes compliance shortcomings revealed by Wells Fargo’s fake accounts scandal. However, the bank didn’t directly answer questions as to whether the Fed’s asset cap had a role in its latest decision.
Wells Fargo warned customers that the account closures “may have an impact on your credit score,” according to the letter.
WFC in upward trend: price rose above 50-day moving average on January 15, 2025
WFC moved above its 50-day moving average on January 15, 2025 date and that indicates a change from a downward trend to an upward trend. In of 41 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 14, 2025. You may want to consider a long position or call options on WFC as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for WFC just turned positive on January 15, 2025. Looking at past instances where WFC's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for WFC crossed bullishly above the 50-day moving average on January 17, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WFC advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 267 cases where WFC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
WFC broke above its upper Bollinger Band on January 15, 2025. 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.
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 outstanding 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 44, placing this stock better than average.
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 (0.054). P/S Ratio (2.595) is also within normal values, averaging (2.460).
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a major bank
Industry MajorBanks