Monday, October 15, 2012

Investopedia: A Wobbly Quarter Could Threaten Well Fargo's Premium

Wells Fargo (NYSE:WFC), along with other "super-regionals," such as U.S. Bancorp (NYSE:USB), PNC (NYSE:PNC) and BB&T (NYSE:BBT), occupies appealing real estate. The firms are big enough to secure cheap credit and massive operating scale, but they don't engage in the same level of volatility-inducing investment banking or proprietary trading as the big money center banks, nor do they carry quite the same regulatory burdens.

All of that said, performance still drives ultimate valuation, and Wells Fargo took a little stumble in the third quarter. One quarter is not enough data to make sweeping judgments about market share or management's strategy, but it may be enough to threaten what has been a premium-to-peers valuation.

Please click here to continue:
http://www.investopedia.com/stock-analysis/2012/A-Wobbly-Quarter-Could-Threaten-Wells-Fargos-Premium-WFC-USB-BBT-JPM1015.aspx

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