Why Wells Fargo Is a Bankable Opportunity
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, banking giant Wells Fargohas 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.
Wells Fargo facts
Headquarters (founded) | San Francisco (1852) |
Market Cap | $229.2 billion |
Industry | Diversified banks |
Trailing-12-Month Revenue | $81.1 billion |
Management | Chairman / CEO John Stumpf |
Return on Equity (average, past 3 years) | 12.3% |
Dividend Yield | 2.8% |
Competitors | Citigroup |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 90% of the 5,017 members who have rated Wells Fargo believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, jsleight3497, succinctly summed up the bull case for our community:
Wells Fargo is one of the most boring (reliable) bank stocks out there. It is the leader in mortgage origination in the United States and takes less risk than its peers. This has served Wells Fargo well in the past few years as it has been much less volatile than its peers. In the short term the other banks such as Citigroup and Bank of America may reward shareholders, but over the long haul Wells Fargo is the best bank to be invested in, so long as they stick with [their] core business and don't become involved in services where [they] have little prior experience.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Wells Fargo may not be your top choice.
With so much of the financial industry getting bad press these days, it may be a greedy-when-others-are-fearful moment. Not surprisingly, some of Warren Buffett's biggest investments are in the space. In the Motley Fool's free report, "The Stocks Only the Smartest Investors Are Buying," you can learn about a small, under-the-radar bank that's too tiny for Buffett's billions. Too bad, because it has better operating metrics than his favorites. Just click here to keep reading.
The article Why Wells Fargo Is a Bankable Opportunity originally appeared on Fool.com.
Fool contributor Brian Pacampara owns shares of Bank of America. The Motley Fool recommends Bank of America and 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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