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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