Wells Fargo Stock Alpha and Beta Analysis

WFC Stock  USD 57.77  0.26  0.45%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Wells Fargo. It also helps investors analyze the systematic and unsystematic risks associated with investing in Wells Fargo over a specified time horizon. Remember, high Wells Fargo's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Wells Fargo's market risk premium analysis include:
Beta
1.21
Alpha
0.19
Risk
1.44
Sharpe Ratio
0.17
Expected Return
0.25
Please note that although Wells Fargo alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Wells Fargo did 0.19  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Wells Fargo stock's relative risk over its benchmark. Wells Fargo has a beta of 1.21  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Wells Fargo will likely underperform. The current year's Enterprise Value Multiple is expected to grow to 6.66, whereas Price Book Value Ratio is forecasted to decline to 0.94.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out Wells Fargo Backtesting, Wells Fargo Valuation, Wells Fargo Correlation, Wells Fargo Hype Analysis, Wells Fargo Volatility, Wells Fargo History and analyze Wells Fargo Performance.
For information on how to trade Wells Stock refer to our How to Trade Wells Stock guide.

Wells Fargo Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Wells Fargo market risk premium is the additional return an investor will receive from holding Wells Fargo long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Wells Fargo. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Wells Fargo's performance over market.
α0.19   β1.21

Wells Fargo expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Wells Fargo's Buy-and-hold return. Our buy-and-hold chart shows how Wells Fargo performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Wells Fargo Market Price Analysis

Market price analysis indicators help investors to evaluate how Wells Fargo stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Wells Fargo shares will generate the highest return on investment. By understating and applying Wells Fargo stock market price indicators, traders can identify Wells Fargo position entry and exit signals to maximize returns.

Wells Fargo Return and Market Media

The median price of Wells Fargo for the period between Tue, Dec 19, 2023 and Mon, Mar 18, 2024 is 49.29 with a coefficient of variation of 6.79. The daily time series for the period is distributed with a sample standard deviation of 3.45, arithmetic mean of 50.76, and mean deviation of 2.88. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Aerovate Therapeutics Sees Strong Trading Volume
02/20/2024
2
Synovus Financial Corp Lowers Stock Holdings in Honeywell International Inc.
02/26/2024
3
Wells Fargo exotic insider transaction detected
02/29/2024
 
Wells Fargo dividend paid on 1st of March 2024
03/01/2024
4
Wells Fargo takes on one of Chases most popular credit cards
03/06/2024
5
2 dogs die during Iditarod, prompting call from PETA to end the 1,000-mile race
03/12/2024
6
EV Startup Fisker Plummets On Report Tesla Rival Mulling Bankruptcy
03/13/2024
7
Ulta Beauty Q4 2023 Earnings Call Transcript
03/14/2024
8
Will Wells Fargos huge new Dallas campus one day become the banks headquarters
03/15/2024

About Wells Fargo Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Wells or other stocks. Alpha measures the amount that position in Wells Fargo has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2022 2023 2024 (projected)
Price To Sales Ratio2.52.152.222.18
Price Earnings Ratio8.8911.589.5711.3

Wells Fargo Upcoming Company Events

As portrayed in its financial statements, the presentation of Wells Fargo's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Wells Fargo's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Wells Fargo's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Wells Fargo. Please utilize our Beneish M Score to check the likelihood of Wells Fargo's management manipulating its earnings.
12th of April 2024
Upcoming Quarterly Report
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12th of July 2024
Next Financial Report
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31st of March 2024
Next Fiscal Quarter End
View
10th of January 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
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31st of December 2023
Last Financial Announcement
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When determining whether Wells Fargo offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Wells Fargo's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Wells Fargo Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Wells Fargo Stock:
Check out Wells Fargo Backtesting, Wells Fargo Valuation, Wells Fargo Correlation, Wells Fargo Hype Analysis, Wells Fargo Volatility, Wells Fargo History and analyze Wells Fargo Performance.
For information on how to trade Wells Stock refer to our How to Trade Wells Stock guide.
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 the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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When running Wells Fargo's 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 the 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.
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Wells Fargo technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Wells Fargo technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Wells Fargo trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...