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.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.

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