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 yearNeutral
Model confidence: 6/10
Key Factors
- RSI approaching overbought territory
- Bearish SMA crossover and decreasing volume
- Proximity to technical resistance
Medium Term
1–3 yearsPositive
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 yearsPositive
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
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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.