Wells Fargo & Compan

WFC
Delayed Nyse - 09/18 12:30:00 am
48.76USD
-0.45%

The risk of a reversal

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David Meurisse
Contributor / Partner

Strategy published on : 09/10/2019 | 11:17

short sell
Live

Entry price : 48.165$
Target : 44.2$
Stop-loss : 50.3$
Potential : 8.23%

Wells Fargo & Company are experienceing a pullback which could increase in magnitude and take the stock towards new lows.
Investors should open a short trade and target the $ 44.2.

Strengths

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● With a P/E ratio at 10.11 for the current year and 10.64 for next year, earnings multiples are highly attractive compared with competitors.


Weaknesses

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

Zonebourse.com 2019
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