Wall Street Bulls Look Optimistic About Wells Fargo (WFC): Should You Buy?
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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Wells Fargo (WFC).Wells Fargo currently has an average brokerage recommendation (ABR) of 1.84, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.84 approximates between Strong Buy and Buy.Of the 25 recommendations that derive the current ABR, 14 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 56% and 4% of all recommendations.Brokerage Recommendation Trends for WFCCheck price target & stock forecast for Wells Fargo here>>>The ABR suggests buying Wells Fargo, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.Is WFC a Good Investment?In terms of earnings estimate revisions for Wells Fargo, the Zacks Consensus Estimate for the current year has increased 0.7% over the past month to $5.28.Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Wells Fargo. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Therefore, the Buy-equivalent ABR for Wells Fargo may serve as a useful guide for investors.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wells Fargo & Company (WFC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Ausgewählte Hebelprodukte auf Wells Fargo
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Der Hebel muss zwischen 2 und 20 liegen
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Name | Hebel | KO | Emittent |
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Quelle: Zacks
Nachrichten zu Wells Fargo & Co.
Analysen zu Wells Fargo & Co.
Datum | Rating | Analyst | |
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14.04.2021 | Wells FargoCo buy | UBS AG | |
26.03.2020 | Wells FargoCo Hold | Joh. Berenberg, Gossler & Co. KG (Berenberg Bank) | |
10.07.2019 | Wells FargoCo Underperform | Wolfe Research | |
29.03.2019 | Wells FargoCo Hold | Deutsche Bank AG | |
02.01.2019 | Wells FargoCo Overweight | Barclays Capital |
Datum | Rating | Analyst | |
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14.04.2021 | Wells FargoCo buy | UBS AG | |
02.01.2019 | Wells FargoCo Overweight | Barclays Capital | |
02.01.2018 | Wells FargoCo Overweight | Barclays Capital | |
03.01.2017 | Wells FargoCo Overweight | Barclays Capital | |
24.10.2016 | Wells FargoCo Market Perform | BMO Capital Markets |
Datum | Rating | Analyst | |
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26.03.2020 | Wells FargoCo Hold | Joh. Berenberg, Gossler & Co. KG (Berenberg Bank) | |
29.03.2019 | Wells FargoCo Hold | Deutsche Bank AG | |
15.09.2017 | Wells FargoCo Neutral | UBS AG | |
18.01.2017 | Wells FargoCo Hold | Argus Research Company | |
11.01.2017 | Wells FargoCo Neutral | UBS AG |
Datum | Rating | Analyst | |
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10.07.2019 | Wells FargoCo Underperform | Wolfe Research | |
05.02.2018 | Wells FargoCo Underperform | RBC Capital Markets | |
15.09.2016 | Wells FargoCo Sell | UBS AG | |
24.03.2016 | Wells FargoCo Sell | UBS AG | |
13.02.2015 | Wells FargoCo Underperform | BMO Capital Markets |
Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für Wells Fargo & Co. nach folgenden Kriterien zu filtern.
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