WFC - This Cheap Stock Just Gave Investors a 14% Raise. Here's Why You Should Take a Look.
2024-07-15 06:17:00 ET
Wells Fargo (NYSE: WFC) recently reported its second-quarter earnings, and thanks to disappointing net interest income, the stock plunged by as much as 7% shortly after the announcement. That's a big move for a large-cap bank stock.
While the interest income miss was definitely disappointing, it's important for investors to realize that this is a rock-solid financial institution that has done a great job of turning itself around in recent years, and that interest-rate headwinds are temporary. There's a lot about Wells Fargo long-term investors might like, and here's why I think it deserves a closer look, especially at a newly discounted share price.
Wells Fargo actually beat expectations on both the top and bottom lines in the second quarter, but the problem is that the bank's net interest income declined significantly more than expected. Wells reported $11.92 billion in net interest income, a 9% year-on-year decline, and about $200 million less than analysts had been expecting.
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This Cheap Stock Just Gave Investors a 14% Raise. Here's Why You Should Take a Look.