Wells Stock Buy Hold or Sell Recommendation

WFC
 Stock
  

USD 39.17  0.54  1.36%   

Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding Wells Fargo is 'Buy'. Macroaxis provides Wells Fargo buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WFC positions. The advice algorithm takes into account all of Wells Fargo's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Wells Fargo's buy-and-hold perspective. Check out Wells Fargo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Wells and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Wells Fargo.

Execute Wells Fargo Buy or Sell Advice

The Wells recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Wells Fargo. Macroaxis does not own or have any residual interests in Wells Fargo or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Wells Fargo's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Wells FargoBuy Wells Fargo
Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

AverageDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Wells Fargo has a Risk Adjusted Performance of (0.23), Jensen Alpha of (0.16), Total Risk Alpha of (0.08) and Treynor Ratio of (0.32)
Wells Fargo trade recommendation module can be used to check and cross-verify current trade advice provided by analysts examining the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Wells Fargo is not overpriced, please check out all Wells Fargo fundamentals, including its debt to equity, market capitalization, and the relationship between the net income and earnings per share . Given that Wells Fargo has a number of shares shorted of 34.51 M, we strongly advise you to confirm Wells Fargo market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Wells Fargo Trading Alerts and Improvement Suggestions

Wells Fargo generated a negative expected return over the last 90 days
Wells Fargo has high likelihood to experience some financial distress in the next 2 years
Wells Fargo has about 416.97 B in cash with (7.86 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 110.01, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Wells Fargo has a frail financial position based on the latest SEC disclosures
Roughly 74.0% of the company outstanding shares are owned by institutional investors
Latest headline from seekingalpha.com: Wells Fargo Stock Still Not A Good Idea - Seeking Alpha

Wells Fargo current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Wells analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Wells analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price57.07
Target Median Price58.50
Target High Price70.00
Recommendation Mean2.00
Number Of Analyst Opinions24
Target Low Price39.30
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Wells Fargo Returns Distribution Density

The distribution of Wells Fargo's historical returns is an attempt to chart the future uncertainty of Wells Fargo's future price movements. The chart of the probability distribution of Wells Fargo stock daily returns describes the distribution of returns around its average expected value. We use Wells Fargo price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Wells Fargo returns is essential to provide solid investment advice for Wells Fargo stock.
Mean Return-0.39Value At Risk-4
Potential Upside3.55Standard Deviation2.34
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Wells Fargo historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Wells Fargo Cash Flow Accounts

201720182019202020212022 (projected)
Net Cash Flow from Financing(10.92 B)(70.98 B)(9.14 B)(1.24 B)(11.24 B)(11.53 B)
Net Cash Flow from Investing(5.16 B)(7.75 B)(29.63 B)122.55 B(7.62 B)(8.22 B)
Net Cash Flow from Operations18.72 B36.07 B6.73 B2.05 B(11.53 B)(11.83 B)

Wells Fargo Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Wells Fargo or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Wells Fargo stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Wells stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.16
β
Beta against DOW1.25
σ
Overall volatility
2.36
Ir
Information ratio -0.09

Wells Fargo Volatility Alert

Wells Fargo exhibits very low volatility with skewness of 0.56 and kurtosis of 1.47. However, we advise investors to further study Wells Fargo technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Wells Fargo's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Wells Fargo's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Wells Fargo Implied Volatility

Wells Fargo's implied volatility exposes the market's sentiment of Wells Fargo stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Wells Fargo's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Wells Fargo stock will not fluctuate a lot when Wells Fargo's options are near their expiration.

Wells Fargo Fundamentals Vs Peers

Comparing Wells Fargo's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Wells Fargo's direct or indirect competition across all of the common fundamentals between Wells Fargo and the related equities. This way, we can detect undervalued stocks with similar characteristics as Wells Fargo or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Wells Fargo's fundamental indicators could also be used in its relative valuation, which is a method of valuing Wells Fargo by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Wells Fargo to competition
FundamentalsWells FargoPeer Average
Return On Equity12.08 %(0.31) %
Return On Asset1.15 %(0.14) %
Profit Margin25.18 %(1.27) %
Current Valuation(35.97 B)16.62 B
Shares Outstanding3.79 B571.82 M
Shares Owned by Insiders0.10 %10.09 %
Shares Owned by Institutions74.00 %39.21 %
Number of Shares Shorted34.51 M4.71 M
Price to Earning8.26 X28.72 X
Price to Book0.94 X9.51 X
Price to Sales1.84 X11.42 X
Revenue81.75 B9.43 B
Gross Profit82.95 B27.38 B
EBITDA26.52 B3.9 B
Net Income19.39 B570.98 M
Cash and Equivalents416.97 B2.7 B
Cash per Share110.01 X5.01 X
Total Debt206.85 B5.32 B
Debt to Equity8.26 %48.70 %
Book Value Per Share42.17 X1.93 K
Cash Flow from Operations(7.86 B)971.22 M
Short Ratio1.47 X4.00 X
Earnings Per Share4.81 X3.12 X
Price to Earnings To Growth1.34 X4.89 X
Number of Employees246.58 K18.84 K
Beta1.14-0.15
Market Capitalization150.51 B19.03 B
Total Asset1787.63 B29.47 B
Retained Earnings129.22 B9.33 B
Five Year Return3.34 %
Last Dividend Paid0.25
   Exercise or conversion by Michael Weinbach of 73069 shares of Wells Fargo subject to Rule 16b-3 [view details]

About Wells Fargo Buy or Sell Advice

When is the right time to buy or sell Wells Fargo? Buying financial instruments such as Wells Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Wells Fargo investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Cash and Equivalents141.25 B264.61 B234.23 B200.05 B
Total Assets1,927.56 B1,955.16 B1,948.07 B1,748.29 B

Use Investing Ideas to Build Portfolios

In addition to having Wells Fargo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Basic Utilities Thematic Idea Now

Basic Utilities
Basic Utilities Theme
Companies involved in production and distribution of electric, gas, water, and other energy utilities. The Basic Utilities theme has 30 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Basic Utilities Theme or any other thematic opportunities.
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Check out Wells Fargo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Wells Fargo information on this page should be used as a complementary analysis to other Wells Fargo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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Is Wells Fargo's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wells Fargo. If investors know Wells will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wells Fargo listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.14
Market Capitalization
148.5 B
Quarterly Revenue Growth YOY
-0.061
Return On Assets
0.0115
Return On Equity
0.12
The market value of Wells Fargo is measured differently than its book value, which is the value of Wells that is recorded on the company's balance sheet. Investors also form their own opinion of Wells Fargo's value that differs from its market value or its book value, called intrinsic value, which is Wells Fargo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wells Fargo's market value can be influenced by many factors that don't directly affect Wells Fargo's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Wells Fargo's value and its price as these two are different measures arrived at by different means. Investors typically determine Wells Fargo value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wells Fargo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.