Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high 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 $652.2 million.
- WFC has traded 42,919 shares today.
- WFC is trading at a new lifetime high.
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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 2.6%. WFC has a PE ratio of 13.3. Currently there are 11 analysts that rate Wells Fargo a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Wells Fargo has been 15.2 million shares per day over the past 30 days. Wells Fargo has a market cap of $280.7 billion and is part of the financial sector and banking industry. The stock has a beta of 0.87 and a short float of 0.6% with 3.02 days to cover. Shares are up 18.7% year-to-date as of the close of trading on Tuesday.
rates Wells Fargo as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 3.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 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 $3.89 versus $3.36 in the prior year. This year, the market expects an improvement in earnings ($4.10 versus $3.89).
- The gross profit margin for WELLS FARGO & CO is currently very high, coming in at 93.74%. 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 25.76% compares favorably to the industry average.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Commercial Banks industry average. The net income increased by 2.7% when compared to the same quarter one year prior, going from $5,578.00 million to $5,729.00 million.
- You can view the full Wells Fargo Ratings Report.