Why Wells Fargo Is Poised to Keep Rallying
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, banking giant Wells Fargo has earned a respected four-star ranking.
With that in mind, let's take a closer look at Wells Fargo and see what CAPS investors are saying about the stock right now.
San Francisco (1852)
Chairman/CEO John Stumpf
Return on Equity (average, past 3 years)
Bank of America
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 3,000 members who have rated Wells Fargo believe the stock will outperform the S&P 500 going forward.
WFC is one of my top picks as it offers EPS visibility compared to money center peers and EPS defensibility relative to regional peers. At 1.5x [tangible book value], WFC is trading at only 0.5x above its March 2009 trough, despite 17% [return on tangible equity] potential. Given its concentration in [residential] real estate, WFC is not immune to a weak consumer, but I believe I have fully reflected this in my estimates and still find valuation compelling.
Of course, that short pitch doesn't even come close to telling the entire story of Wells Fargo. You're in luck, though. The Fool's brand new premium report on Wells Fargo tells all sides of the story for one of the most compelling financial companies in the world. You can grab your copy, which comes with free updates for 12 months, by just clicking here.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Wells Fargo Is Poised to Keep Rallying originally appeared on Fool.com.Fool contributor Brian Pacampara owns shares of Bank of America. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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