Wells Stock Buy Hold or Sell Recommendation

WFC -  USA Stock  

USD 48.38  3.07  6.78%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Wells Fargo is 'Strong Buy'. Macroaxis provides Wells Fargo buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding WFC positions. The advice algorithm takes into account all of Wells Fargo's available fundamental, technical, and predictive indicators you will find on this site.

Wells Advice 

 
Refresh
The advice is provided from Wells Fargo's buy-and-hold perspective. Check out Wells Fargo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Wells and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Wells Fargo.

Execute Wells Fargo Buy or Sell Advice

The Wells recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Wells Fargo. Macroaxis does not own or have any residual interests in Wells Fargo or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Wells Fargo's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Wells FargoBuy Wells Fargo
Strong Buy

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

Very GoodDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Wells Fargo has a Risk Adjusted Performance of 0.0585, Jensen Alpha of 0.1179, Total Risk Alpha of 0.1107, Sortino Ratio of 0.0602 and Treynor Ratio of 0.0856
Our trade advice tool can be used to complement Wells Fargo recommendation provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment horizon. To make sure Wells Fargo is not overpriced, please check out all Wells Fargo fundamentals, including its debt to equity, market capitalization, and the relationship between the net income and earnings per share . Given that Wells Fargo has a number of shares shorted of 47.38 M, we strongly advise you to confirm Wells Fargo market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Wells Fargo Trading Alerts and Improvement Suggestions

Wells Fargo has about 476.17 B in cash with (42.87 B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 115.96, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Wells Fargo has a frail financial position based on the latest SEC disclosures
Roughly 73.0% of the company outstanding shares are owned by institutional investors
Latest headline from www.fool.com: Why Shares of Wells Fargo Are Up Today - The Motley Fool

Wells Fargo current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Wells analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Wells analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price50.35
Target Median Price50.00
Target High Price65.00
Recommendation Mean2.20
Number Of Analyst Opinions25
Target Low Price30.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Wells Fargo Returns Distribution Density

The distribution of Wells Fargo's historical returns is an attempt to chart the future uncertainty of Wells Fargo's future price movements. The chart of the probability distribution of Wells Fargo stock daily returns describes the distribution of returns around its average expected value. We use Wells Fargo price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Wells Fargo returns is essential to provide solid investment advice for Wells Fargo stock.
Mean Return0.14Value At Risk-2.81
Potential Upside3.23Standard Deviation2.07
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Wells Fargo historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Wells Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Wells Fargo is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Wells Fargo backward and forwards among themselves. Wells Fargo's institutional investor refers to the entity that pools money to purchase Wells Fargo's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Envestnet Asset Management IncCommon Shares1.7 M77.3 M
Daily Journal CorpCommon Shares1.6 M73.9 M
Atalanta Sosnoff Capital LlcCommon Shares1.2 M55.1 M
State Of Alaska Department Of RevenueCommon Shares946.3 K43.9 M
Ifm Investors Pty LtdCommon Shares543.7 K25.2 M
Hikari Power LtdCommon Shares523.6 K24.3 M
Cardinal Capital Management IncCommon Shares483.8 K22.5 M
Note, although Wells Fargo's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Wells Fargo Cash Flow Accounts

201620172018201920202021 (projected)
Net Cash Flow from Financing123.57 B(10.92 B)(70.98 B)(9.14 B)(1.24 B)(1.28 B)
Net Cash Flow from Investing(122.12 B)(5.16 B)(7.75 B)(29.63 B)122.55 B132.23 B
Net Cash Flow from Operations169 M18.72 B36.07 B6.73 B2.05 B2.1 B

Wells Fargo Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Wells Fargo or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Wells Fargo stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Wells stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.12
β
Beta against DOW1.49
σ
Overall volatility
2.04
Ir
Information ratio 0.06

Wells Fargo Volatility Alert

Wells Fargo currently demonstrates below-average downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.12. However, we advise investors to further question Wells Fargo expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Wells Fargo's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Wells Fargo's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Wells Fargo Fundamentals Vs Peers

Comparing Wells Fargo's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Wells Fargo's direct or indirect competition across all of the common fundamentals between Wells Fargo and the related equities. This way, we can detect undervalued stocks with similar characteristics as Wells Fargo or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Wells Fargo's fundamental indicators could also be used in its relative valuation, which is a method of valuing Wells Fargo by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Wells Fargo to competition
FundamentalsWells FargoPeer Average
Return On Equity9.67 %(0.31) %
Return On Asset0.92 %(0.14) %
Profit Margin22.12 %(1.27) %
Current Valuation(18.29 B)16.62 B
Shares Outstanding4.14 B571.82 M
Shares Owned by Insiders0.10 %10.09 %
Shares Owned by Institutions72.70 %39.21 %
Number of Shares Shorted47.38 M4.71 M
Price to Earning32.04 X28.72 X
Price to Book1.16 X9.51 X
Price to Sales2.53 X11.42 X
Revenue76.44 B9.43 B
Gross Profit58.32 B27.38 B
EBITDA26.52 B3.9 B
Net Income15.56 B570.98 M
Cash and Equivalents476.17 B2.7 B
Cash per Share115.96 X5.01 X
Total Debt244.55 B5.32 B
Debt to Equity8.26 %48.70 %
Book Value Per Share40.31 X1.93 K
Cash Flow from Operations(42.87 B)971.22 M
Short Ratio1.97 X4.00 X
Earnings Per Share1.46 X3.12 X
Price to Earnings To Growth0.09 X4.89 X
Number of Employees259.2 K18.84 K
Beta1.36-0.15
Market Capitalization193.18 B19.03 B
Total Asset1787.63 B29.47 B
Retained Earnings129.22 B9.33 B
Five Year Return3.57 %
Last Dividend Paid0.8
   Acquisition by Wayne Hewett of 676 shares of Wells Fargo subject to Rule 16b-3 [view details]

Wells Fargo Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Wells . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution3.7 M
Daily Balance Of Power1.013201
Rate Of Daily Change1.07
Day Median Price47.23
Day Typical Price47.61
Price Action Indicator2.69

About Wells Fargo Buy or Sell Advice

When is the right time to buy or sell Wells Fargo? Buying financial instruments such as Wells Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Wells Fargo investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2018 2019 2020 2021 (projected)
Cash and Equivalents173.29 B141.25 B264.61 B214.06 B
Total Assets1,895.88 B1,927.56 B1,955.16 B1,743.19 B

Use Investing Ideas to Build Portfolios

In addition to having Wells Fargo in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Small Growth Thematic Idea Now

Small Growth
Small Growth Theme
Funds or Etfs that invest in stocks of small to mid-sized companies with above-average risk and growth rate that usually reinvest their earnings back into business. Small Growth theme has 40 constituents.
View All  Next Launch Small Growth
Check out Wells Fargo Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Wells Fargo information on this page should be used as a complementary analysis to other Wells Fargo's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fund Screener module to find activelly-traded funds from around the world traded on over 30 global exchanges.

Complementary Tools for Wells Stock analysis

When running Wells Fargo price analysis, check to measure Wells Fargo's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Wells Fargo is operating at the current time. Most of Wells Fargo's value examination focuses on studying past and present price action to predict the probability of Wells Fargo's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Wells Fargo's price. Additionally, you may evaluate how the addition of Wells Fargo to your portfolios can decrease your overall portfolio volatility.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
The market value of Wells Fargo is measured differently than its book value, which is the value of Wells that is recorded on the company's balance sheet. Investors also form their own opinion of Wells Fargo's value that differs from its market value or its book value, called intrinsic value, which is Wells Fargo's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wells Fargo's market value can be influenced by many factors that don't directly affect Wells Fargo underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Wells Fargo's value and its price as these two are different measures arrived at by different means. Investors typically determine Wells Fargo value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wells Fargo's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.