Wells Fargo (WFC, $50.12) disappoints on Q3 earnings; blames legal costs for hurting bottom-line
Wells Fargo posted weaker-than-expected quarterly earnings per share, sending its shares down on Tueaday.
For the third quarter, the financial services company reported earnings of 92 cents a share, which was well below analysts’ expectation of $1.23 a share. According to Wells Fargo, its bottom-line took a major hit from $1.6 billion, or 35 cents a share, an amount set aside to cover litigation costs of "previously disclosed retail sales practices matters."
The company’s revenue for the quarter came in at $22 billion (higher than the year-ago quarter’s $21.9 billion), and above the $21.1 billion estimate of analysts polled by FactSet.
Wells Fargo is reeling from a string of scandals involving past marketing and sales practices, and it remains to be seen how far its incoming CEO Charles Scharf will be able to extricate the company out of its chequered past and push it towards a more positive direction.
WFC's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for WFC turned positive on July 16, 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 01, 2026. You may want to consider a long position or call options on WFC as a result. In of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 10-day moving average for WFC crossed bullishly above the 50-day moving average on June 09, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 20 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 332 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 246 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 10-day RSI Indicator for WFC moved out of overbought territory on June 17, 2026. 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 42 similar instances where the indicator moved out of overbought territory. In of the 42 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 67 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 .
WFC broke above its upper Bollinger Band on July 06, 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 (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 20, placing this stock better than average.
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 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 (1.618) is normal, around the industry mean (1.964). WFC has a moderately low P/E Ratio (12.801) as compared to the industry average of (15.835). Projected Growth (PEG Ratio) (1.681) is also within normal values, averaging (1.691). Dividend Yield (0.020) settles around the average of (0.025) among similar stocks. P/S Ratio (3.180) is also within normal values, averaging (4.141).
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.
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a major bank
Industry MajorBanks
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