After housing prices have been trending higher, it was a bit of a surprising to see construction data pointing to a slowdown. Investors in banks like Wells Fargo are betting on the continued strength of the housing and construction market.
Despite the slowdown in overall construction spending, a deeper dive into the numbers reveals the impact of government spending trends on the numbers.
In the following video, Motley Fool banking analysts Matt Koppenheffer and David Hanson remind investors to tune out the monthly noise and focus on annual trends and how banks are affected.
Wells Fargo'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, I invite you to 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 Construction Spending Unexpectedly Down originally appeared on Fool.com.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool recommends and owns shares of 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.