Wells Fargo & Company is a diversified US financial holding company. The subsidiary’s service offerings include corporate and personal banking, mortgage loans, financing, leasing, stock trading and asset management, as well as insurance.

Exceeded revenue expectations, slight miss on earnings In the past quarter, earnings rose to $0.86 per share compared to $0.75 in the previous year, but fell short of analyst expectations of $0.87. Revenue increased by 2% to $20.48 billion, exceeding analyst expectations of $20.33 billion. Overall, it was a mixed result.

Increased provision for credit losses The company announced that its provision for credit losses totaled $1.28 billion, compared to $957 million in the previous year. This indicates that Wells Fargo expects a higher risk of loan defaults.

CEO cautiously optimistic „We continue to execute on our strategic priorities and although it is still early and we have much work to do, we are already seeing improved growth and market share in parts of the company that we believe will lead to higher returns over time,“ said Chief Executive Charlie Scharf.

US bank stock can rise to $66 Conclusion: Overall, the bank’s stock has hardly moved in a year. As can also be seen on the chart, the downtrend has been halted and a new uptrend has been in place since the end of the year. Analysts are also positive: 17 out of 29 analysts recommend buying, while 12 recommend holding. Not a single analyst recommends selling. The average analyst price target is $56, with some even predicting $66. In addition, as an investor, you can benefit from a dividend yield of 4.09%. A look at the valuation shows that the US bank stock is undervalued with a P/E ratio of 10.