Wells Fargo Sell-Off Is Overdone
By hitting earnings target, bank shows strength in difficult market.
The strong quarterly earnings that San Francisco-based Wells Fargo (WFC) reported Tuesday prove it can grow despite higher interest rates and a slowing economy. The decline in the company's share price may signal a buying opportunity for some investors.
Wells Fargo reported earnings rose 15% from the year-earlier period to $0.63 per share, meeting Wall Street's estimate. While the quarter's results were helped by unsustainable venture-capital gains and a few acquisitions, the underlying earnings trend is positive.
Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.