Wells Fargo (WFC) Reaches New Lifetime High Today

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.

Trade-Ideas LLC identified Wells Fargo ( WFC) 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 $805.4 million.
  • WFC has traded 4.9 million 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 14. Currently there are 11 analysts that rate Wells Fargo a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Wells Fargo has been 14.8 million shares per day over the past 30 days. Wells Fargo has a market cap of $293.0 billion and is part of the financial sector and banking industry. The stock has a beta of 0.87 and a short float of 0.6% with 2.04 days to cover. Shares are up 2.4% year-to-date as of the close of trading on Thursday.

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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 and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • WFC's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • WELLS FARGO & CO reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
  • The gross profit margin for WELLS FARGO & CO is currently very high, coming in at 92.88%. 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, the net profit margin of 26.07% trails the industry average.
  • Net operating cash flow has decreased to $2,515.00 million or 11.47% when compared to the same quarter last year. Despite a decrease in cash flow WELLS FARGO & CO is still fairing well by exceeding its industry average cash flow growth rate of -27.80%.

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