Wells Fargo (WFC) Strong In Pre-Market Trading

Trade-Ideas LLC identified Wells Fargo (WFC) as a pre-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Wells Fargo

(

WFC

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Wells Fargo as such a stock due to the following factors:

  • WFC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $761.5 million.
  • WFC traded 47,143 shares today in the pre-market hours as of 9:02 AM.
  • WFC is up 2.6% today from yesterday's close.

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More details on WFC:

Wells Fargo & Company provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. The stock currently has a dividend yield of 2.7%. WFC has a PE ratio of 13. Currently there are 13 analysts that rate Wells Fargo a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Wells Fargo has been 18.1 million shares per day over the past 30 days. Wells Fargo has a market cap of $282.0 billion and is part of the financial sector and banking industry. The stock has a beta of 0.87 and a short float of 0.7% with 2.77 days to cover. Shares are down 0.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Wells Fargo as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • WFC's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • WELLS FARGO & CO's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WELLS FARGO & CO increased its bottom line by earning $4.10 versus $3.89 in the prior year. This year, the market expects an improvement in earnings ($4.15 versus $4.10).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 1.2% when compared to the same quarter one year prior, going from $5,729.00 million to $5,796.00 million.
  • The gross profit margin for WELLS FARGO & CO is currently very high, coming in at 92.60%. Regardless of WFC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WFC's net profit margin of 25.35% compares favorably to the industry average.

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