Friday, January 16, 2015

Seeking Alpha: Wells Fargo Still Delivering Some Growth

Wells Fargo (NYSE:WFC) was the best performer of the seven largest U.S. banks last year, and it's hard to argue that the bank didn't earn that Wall Street love. The earnings quality here is relatively high, the net interest margin is solid, and loan growth has been pretty good. Add in solid returns on capital and Wells Fargo is definitely a solid bank.

The only real nit for me to pick is valuation. I think Wells Fargo still has a good opportunity to cross-sell more products to its retail and commercial customers, grow loans at a rate greater than GDP, and bolster businesses like cards and asset management. With its returns on capital supporting a fair value range between $51 and $54, though, I'm not so sure of Wells Fargo's ability to maintain that peer-beating stock market performance.

Find more here:
Wells Fargo Still Delivering Some Growth

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