Saturday, February 9, 2013

Why Wells Fargo Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, banking giant Wells Fargo (NYSE: WFC  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Wells Fargo, and see what CAPS investors are saying about the stock right now.

Wells Fargo facts

Headquarters (founded)

San Francisco (1929)

Market Cap

$182.5 billion

Industry

Diversified banks

Trailing-12-Month Revenue

$78.9 billion

Management

Chairman/CEO John Stumpf

CFO Timothy Sloan

Return on Equity (average, past 3 years)

11.8%

Cash / Debt

$216.7 billion / $184.6 billion

Dividend Yield

2.9%

Competitors

Bank of America (NYSE: BAC  )

Citigroup (NYSE: C  )

JPMorgan Chase (NYSE: JPM  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 4,932 members who have rated Wells Fargo believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those bulls, All-Star zk116, succinctly summed up the Wells Fargo bull case for our community:

At first glance, you may be disappointed with Wells Fargo's lack of growth in interest income since the market bottom in '09. ... Earnings per share growth is still phenomenal carried mostly by their booming operating income. Investors still seem to be hesitant with this one. The sentiment is likely to change over time and I believe it is best to hop on now while it is still cheap at a P/E of 10.

Of course, that short pitch doesn't even come close to telling the entire story of Wells Fargo. You're in luck, though. The Fool's brand new premium report on Wells Fargo tells all sides of the story for one of the most compelling financial companies in the world. You can grab your copy, which comes with free updates for 12 months, by just clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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