Why Wells Fargo Is Poised to Keep Rallying

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, banking giant Wells Fargo (NYSE: WFC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Wells Fargo and see what CAPS investors are saying about the stock right now.

Wells Fargo facts

Headquarters (founded)

San Francisco (1852)

Market Cap

$191.5 billion

Industry

Diversified banks

Trailing-12-Month Revenue

$79.5 billion

Management

Chairman/CEO John Stumpf
CFO Timothy Sloan

Return on Equity (average, past 3 years)

11.9%

Dividend Yield

2.8%

Competitors

Bank of America
Citigroup
JPMorgan 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 3,000 members who have rated Wells Fargo believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, SwingTraderBoss, tapped Wells Fargo as a rather bankable opportunity:

WFC is one of my top picks as it offers EPS visibility compared to money center peers and EPS defensibility relative to regional peers. At 1.5x [tangible book value], WFC is trading at only 0.5x above its March 2009 trough, despite 17% [return on tangible equity] potential. Given its concentration in [residential] real estate, WFC is not immune to a weak consumer, but I believe I have fully reflected this in my estimates and still find valuation compelling.

Of course, that short pitch doesn't even come close to telling the entire story of Wells Fargo. You're in luck, though. The Fool's brand new premium report on Wells Fargo tells all sides of the story for one of the most compelling financial companies in the world. You can grab your copy, which comes with free updates for 12 months, by just clicking here.


Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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