What's more, the bank consistently demonstrates solid execution and leverage as both its assets and its investments continue to produce meaningful returns. This is despite prolonged weakness in interest rates. Well Fargo continues to benefit from a business that is unburdened from unfavorable risk -- the types that have hurt peers such as Citigroup, which has significant exposure abroad.
Finally, while most banks tend to fall in within the same category and thereby appraised on similar standards and metrics, it is clear that Wells is out to set itself apart from the rest. There's a premium placed for banks with above-average growth prospects that still meets certain criteria of safety.
From that standpoint, Wells Fargo meets all of the requirements. From an investment perspective, the stock is trading at a considerable discount. Investors should expect gains of 20% as the stock should reach $40 by its third quarter report.
At the time of publication, the author held no position in any of the stocks mentioned.Follow @rsaintvilus This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV