This Is What Will Boost Your Bank Stock Right Now

Updated

Although banks are currently able to borrow at record low interest rates, the rates they are currently able to lend at are also very depressed at the moment, leading to a tight squeeze on the income that banks are receiving currently from their net interest margin income. In this video, Motley Fool financial analyst Matt Koppenheffer looks at a few banks that are heavily concentrated in the other major banking revenue stream, fee-based banking, which is more insulated against this margin compression.

One of the best insulated against this trend is Wells Fargo. The bank's dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains? To help figure out whether Wells Fargo is a buy today, download our premium research report from one of The Motley Fool's top banking analysts. Click here now for instant access to this in-depth take on Wells Fargo.


The article This Is What Will Boost Your Bank Stock Right Now originally appeared on Fool.com.

Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Wells Fargo and owns shares of Bank of America, Citigroup, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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