Wells Fargo

WFC
Delayed Nyse - 04/23 10:01:37 pm
47.35USD
+0.19%

The sellers are gaining the upper hand

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David Meurisse
Contributor / Partner

Strategy published on : 02/07/2019 | 10:15

short sell
Stop-loss triggered

Entry price : 48.505$
Target : 44.4$
Stop-loss : 50.7$
Potential : 8.46%

Shares in Wells Fargo show a deteriorated chart pattern with the risk of a trend reversal. A phase of declining share prices seems to establish itself.
Investors should open a short trade and target the $ 44.4.

Strengths

● The group's activity appears highly profitable thanks to its outperforming net margins.

● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

● The company's attractive earnings multiples are brought to light by a P/E ratio at 9.93 for the current year.

● The company is one of the best yield companies with high dividend expectations.


Weaknesses

● As estimated by analysts, this group is among those businesses with the lowest growth prospects.

● The company's earnings releases usually do not meet expectations.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

● The underlying tendency is negative on the weekly chart below the resistance at 51.25 USD

Zonebourse.com 2019
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