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WFC:NYSEWells Fargo & Company Analysis

Data as of 2026-06-17 - not real-time

$85.05

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Wells Fargo is trading at $85.05, just shy of its technical resistance of $85.06, while the 20‑day SMA (≈79.43) sits below the 50‑day SMA (≈79.73), signaling a bearish price bias. RSI at 68.4 suggests the stock is approaching overbought levels, and although the MACD line is bullish, the decreasing volume trend adds caution. The broader market sentiment is extremely bullish (Fear & Greed Index 92), yet the stock’s own trend direction remains bearish. On the fundamentals side, the PE ratio of 12.85 is well under the industry average of 17.15, and the dividend yield of 2.12% comes with a modest 27% payout ratio, indicating a sustainable income stream. A DCF‑derived fair value implies roughly a 13% upside, reinforcing the view that the shares are modestly undervalued. Revenue growth of 5.7% and an operating margin near 30% highlight solid earnings potential, while the removal of the Federal Reserve’s asset cap in 2025 reduces regulatory headwinds. Overall, the stock blends value appeal with dividend attractiveness, but short‑term technical signals advise patience.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • RSI approaching overbought territory
  • Bearish SMA crossover and decreasing volume
  • Proximity to technical resistance

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Undervalued relative to peers and DCF upside
  • Attractive dividend yield with low payout ratio
  • Steady revenue growth and strong operating margins

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Sustainable dividend supported by cash generation
  • Resilient banking model with diversified segments
  • Reduced regulatory constraints post‑stress‑test

Key Metrics & Analysis

Financial Health

Revenue Growth5.70%
Profit Margin26.74%
P/E Ratio12.8
ROE12.03%
ROA1.05%
P/B Ratio1.6
Op. Cash Flow$1.2B
Industry P/E17.1

Technical Analysis

TrendBearish
RSI68.4
Support$73.85
Resistance$85.06
MA 20$79.43
MA 50$79.73
MA 200$84.19
MACDBullish
VolumeDecreasing
Fear & Greed Index92.13

Valuation

Fair Value$1.92
Target Price$96.11
Upside/Downside13.01%
GradeUndervalued
TypeBlend
Dividend Yield2.12%

Risk Assessment

Beta0.82
Volatility27.54%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.