Wells Fargo & Co (WFC): Financial's Starring Winner Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Wells Fargo ( WFC) pushed the Financial sector higher today making it today's featured financial winner. The sector as a whole closed the day up 0.7%. By the end of trading, Wells Fargo rose 75 cents (2%) to $37.42 on average volume. Throughout the day, 23.6 million shares of Wells Fargo exchanged hands as compared to its average daily volume of 23.2 million shares. The stock ranged in a price between $36.75-$37.48 after having opened the day at $36.77 as compared to the previous trading day's close of $36.67. Other companies within the Financial sector that increased today were: American Spectrum Realty ( AQQ), up 40.3%, Altisource Residential Corporation ( RESI), up 29.3%, Palmetto ( PLMT), up 23.6%, and PSB Holdings ( PSBH), up 16.8%.
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Wells Fargo & Company provides retail, commercial, and corporate banking services. Wells Fargo has a market cap of $194.5 billion and is part of the banking industry. The company has a P/E ratio of 11, below the S&P 500 P/E ratio of 17.7. Shares are up 7.3% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate Wells Fargo a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Wells Fargo as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, China Housing & Land Development ( CHLN), down 15%, First Security Group ( FSGI), down 9.1%, Optibase ( OBAS), down 7.8%, and Consumer Portfolio Services ( CPSS), down 5.7%, were all laggards within the financial sector with Toronto-Dominion Bank ( TD) being today's financial sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the financial sector could consider Financial Select Sector SPDR ( XLF) while those bearish on the financial sector could consider Proshares Short Financials ( SEF).

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