Wells Fargo Will Be A Top Performer Over the Next Couple of Years

“The company has a new CEO, Charlie Scharf, who joined in 2019 from JP Morgan. Charlie has been moving quickly to turnaround the company.

He has brought in six new members to the Operating Committee all from outside the company and has recruited numerous successful senior executives from JP Morgan, BNY Mellon, and other leading financial institutions to fill senior roles at the bank.

The company is taking a fresh look at each business segment, benchmarking against its peers. The company’s operating efficiency is more than 1700bps out of line with their peer group, providing a $10B cost and efficiency opportunity over the next couple of years.

Wells Fargo’s stock price was more than cut in half during 2020; we entered the position at a 40% discount to book value which was near 30 year lows and approaching 2008-09 Financial crisis levels. Over the next couple of years, greater operating efficiencies and loan growth would support a return to 10%+ ROE, normalized EPS of $5/share, and book value likely approaching $50/share.

We believe it’s more likely than not Wells Fargo’s share will be a top performer over the next couple of years.”

https://finance.yahoo.com/news/miller-value-partners-wells-fargo-181338092.html

Comment! It's anonymous!

16 replies (most recent on top)

Oh wow I gurpess it’s time now for buy the stock. Anyone knows if we buy the stock does HR keep it here for us?

If you bought WFC and sold today you would make a 52% profit

Going higher and higher

"don’t work here AND own the stock"

Amen to that, and I wish I'd paid more attention to where company matching was going. I let that go on for FAR too long.

Wells' success is always just around the next corner

None of us know what’s going to happen to the stock over the next couple years. And neither does this guy! Too many variables.

For all we know, Charlie could use the money he saves from getting rid of 25% of his employees and pump up the price with billions of $ in stock buybacks like Tim Sloan did. Or regulators could uncover more fraud and failures and we could be in the toilet.

The point is: don’t work here AND own the stock. That is too much exposure for a company that is in trouble with the Feds and has a whole new and unproven management team.

hey Einstein, how are you comparing penny stocks to real stocks?

What a stupid article and comments

@mon+19rA72sb, I would say their timing was excellent. Most people are still underwater on WFC stock

@mon+19rA72sb, I guess if you like penny stocks, go for it!

@lua+19rA72sb

Oh boy you are stoopid.

So what would you tell someone who bought the stock 3 months ago and sold it today for a tidy profit of +43%?

correction , typo in previous post, they went down 70% and up 6%

come on ding dong stock crashed beginning of last year 70% , now they went up 10%; this means the are still down 64%; try taking a basic math class;

now i know another reason I dont want to bank here, they cant even do simple math!

@hdy+19rA72sb

Did you read the article and understand that is the whole point...part of their investment thesis is that WFC is oversold and as a result they feel it offers a great opportunity

WFC stock is up 43% in the last 3 months...

JPM is only up 26.7% over the same period
BAC up 27%

We are crushing our peers

what a dumb article, the stock is down 70%; if anything going up to what it was at, but he is even projecting lower than where is was before it has crashed

Just another equities boutique with a position in WFC stock trying to pump up its value.

Follow their advice at your own peril.

“Last year they had more Federal issues”

Excellent rebuttal. You sound like a genius. Wells is blessed to have tellers like you

LOL, omg, are you kidding? Last year they had more Federal issues; when will these stop?

Thread regarding Wells Fargo & Co. layoffs

Wells Fargo Will Be A Top Performer Over the Next Couple of Years

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