Wells Fargo's Results Show The Amount Of Work Left To Be Done

In quarter that has so far seen earnings reports that I’d characterize as okay-to-good, Wells Fargo (WFC) once again stands out for the wrong reasons. Not only was there barely any positive news of significance in the quarterly results, I’m not sure investors will be patient with a turnaround process that is going to take years – particularly with management indicating that it was going to take most of 2020 for the new CEO just to complete his review of the business.

Of course it’s more important for Wells Fargo’s turnaround to be done right as opposed to right now, but as I said, Wall Street is not a forgiving or patient place, and 2020 results are likely to be weak. Low single-digit earnings growth can still support a fair value in the mid-$50’s, but it’s tough to reconcile above-average long-term potential with considerable short-term challenges.

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Wells Fargo's Results Show The Amount Of Work Left To Be Done