Weitz Funds Comments on Wells Fargo

Guru stock highlight

Author's Avatar
Jan 26, 2017
Article's Main Image

Wells Fargo (NYSE:WFC) is a diversified financial services company. Shares rose materially during the quarter largely due to three tailwinds. First, the U.S. election results provided a boost to all bank stocks on expectations that industry regulatory burdens may ease. Second, higher interest rates and a steeper yield curve raised prospects for net interest margin (NIM) expansion. Third, the company took additional steps to address the “bogus account” scandal, including high-level management changes. The company’s very low-cost deposit base, ubiquitous distribution, ample capital and diverse business lines further our continued confidence. Wells Fargo’s stock trades at less than 14x expected earnings and a modest discount to our value estimate.

From Weitz Investment Management's Value Fund fourth quarter 2016 commentary.

Also check out:
Rating:
0 / 5 (0 votes)

GuruFocus Screeners

Related Articles