Wells Fargo (WFC, $44.93) beats Q2 earnings expectations, amid release of $1.6 billion credit loss reserves
Wells Fargo on Wednesday reported second-quarter earnings and revenue results that topped Wall Street’s expectations, as the bank continued to release reserves that it had set aside as cushion against pandemic-induced loan loss risks.
The financial behemoth’s earnings for the quarter came in at $1.38, beating the 97 cents a share expected by analysts polled by Refinitiv. The quarter marked a sharp rebound from the loss it incurred in the year-ago quarter.
Revenue rose +10% year-over-year to $20.27 billion, vs. $17.77 billion expected by analysts surveyed by Refinitiv.
Wells Fargo released $1.6 billion of its credit loss reserves as consumers perform better than the bank expected amid the pandemic-induced recession.
The bank’s net interest margin was 2.02% for the quarter, compared to analysts’ expectation of 2.05% (according to FactSet).
WFC in upward trend: price rose above 50-day moving average on August 28, 2026
WFC moved above its 50-day moving average on August 28, 2026 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 September 02, 2026. You may want to consider a long position or call options on WFC as a result. In of 78 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 September 02, 2026. Looking at past instances where WFC's MACD turned positive, the stock continued to rise in of 46 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 September 04, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 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 .
The 50-day moving average for WFC moved above the 200-day moving average on August 06, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WFC advanced for three days, in of 331 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.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 .
Fundamental Analysis (Ratings)
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 19, placing this stock worse than average.
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 Seasonality Score of (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 PE Growth Rating for this company is (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.
The Tickeron Valuation Rating of (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 (1.650) is normal, around the industry mean (1.953). P/E Ratio (13.077) is within average values for comparable stocks, (15.654). Projected Growth (PEG Ratio) (1.522) is also within normal values, averaging (1.405). Dividend Yield (0.021) settles around the average of (0.025) among similar stocks. P/S Ratio (3.249) is also within normal values, averaging (4.034).
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a major bank
Industry MajorBanks
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