Wells Fargo & Co (WFC): Today's Featured Banking Winner

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 Banking industry higher today making it today's featured banking winner. The industry as a whole closed the day up 0.9%. By the end of trading, Wells Fargo rose $0.67 (1.7%) to $40.94 on average volume. Throughout the day, 16,802,371 shares of Wells Fargo exchanged hands as compared to its average daily volume of 20,984,000 shares. The stock ranged in a price between $40.20-$40.99 after having opened the day at $40.25 as compared to the previous trading day's close of $40.27. Other companies within the Banking industry that increased today were: Home Federal Bancorp ( HOME), up 7.6%, Westpac Banking ( WBK), up 6.5%, Plumas Bancorp ( PLBC), up 6.1% and First PacTrust Bancorp ( BANC), up 5.2%.
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Wells Fargo & Company provides retail, commercial, and corporate banking services. Wells Fargo has a market cap of $215.4 billion and is part of the financial sector. The company has a P/E ratio of 11.5, below the S&P 500 P/E ratio of 17.7. Shares are up 17.8% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate Wells Fargo a buy, 1 analyst rates it a sell, and 9 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 solid stock price performance, impressive record of earnings per share growth, expanding profit margins, notable return on equity and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Carolina Trust Bank ( CART), down 6.5%, Oconee Federal Financial ( OFED), down 5.4%, American River Bankshares ( AMRB), down 5.3% and First United ( FUNC), down 4.5% , were all laggards within the banking industry with Credicorp ( BAP) being today's banking industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the banking industry could consider KBW Bank ETF ( KBE) while those bearish on the banking industry could consider ProShares Short KBW Regional Bankng ( KRS).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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