Wells Fargo & Company (NYSE:WFC) is one of the worst performers on the stock market today. At current price of $50.44, the shares have already lost -1.67 points (-3.2% lower) from its previous close of $52.11. Should you buy or avoid them? The stock sets an active trading volume day with a reported 12166304 contracts so far this session. WFC shares had a relatively better volume day versus average trading capacity of 18.21 million shares, but with a 4.22 billion float and a -1.86% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for WFC stock indicates that the average analyst price target is $53.04 per share. This means the stock has a potential increase of 5.15% from where the WFC share price has been trading recently.
During the recent trading session for Wells Fargo & Company (NYSE:WFC), the company witnessed their stock drop by $-2.2 over a week and tumble down $-3.33 from the price 20 days ago. When compared to their established 52-week high of $54.75, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 11/29/19. The recent low of $43.34 stood for a -7.86% since 08/15/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.1 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Wells Fargo & Company, the two-week RSI stands at 25.45. This figure suggests that WFC stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current WFC readings is similarly very revealing as it has a stochastic reading of 8.77% at this stage. This figure means that WFC share price today is being overbought.
Technical chart claims that Wells Fargo & Company (WFC) would settle between $52.46/share to $52.82/share level. However, if the stock price goes below the $51.79 mark, then the market for Wells Fargo & Company becomes much weaker. If that happens, the stock price might even plunge as low as $51.48 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.93. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Barclays lowered their recommendation on shares of WFC from Overweight to Equal Weight in their opinion released on January 06. Robert W. Baird analysts have lowered their rating of Wells Fargo & Company (NYSE:WFC) stock from Neutral to Underperform in a separate flash note issued to investors on January 02. Analysts at Odeon lowered the stock to a Sell call from its previous Hold recommendation, in a research note that dated back to December 19.
WFC equity has an average rating of 2.52, with the figure leaning towards a bullish end. 25 analysts who tracked the company were contacted by Reuters. Amongst them, 13 rated the stock as a hold while the remaining 12 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 4 analysts rated Wells Fargo & Company (NYSE:WFC) as a buy or a strong buy while 8 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, WFC stock price is currently trading at 12.08X forward 12-month Consensus EPS estimates, and its P/E ratio is 11.2 while for the average stock in the same group, the multiple is 11.4. Wells Fargo & Company current P/B ratio of 1.3 means it is trading at a premium against its industry’s 1.1.
Wells Fargo & Company (WFC)’s current-quarter revenues are projected to climb by nearly -4% to hit $20.14 billion, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over -2% from $86.41 billion to a noteworthy $84.67 billion. At the other end of the current quarter income statement, Wells Fargo & Company is expected to see its adjusted earnings surge by roughly -7.4% to hit $1.12 per share. For the fiscal year, WFC’s earnings are projected to climb by roughly 6.1% to hit $4.54 per share.