MMR

Wells Fargo Stock Upgraded Ahead of Earnings

Wells Fargo will report earnings after Friday's close

Deputy Editor
Oct 8, 2024 at 1:31 PM
facebook X logo linkedin


Wells Fargo & Co (NYSE:WFC) is slated to step into the earnings confessional before the market opens on Friday, Oct. 11. Zacks analysts expect the bank giant to report third-quarter earnings of $1.27 per share on revenue of $20.38 billion report. Ahead of the event, options traders are betting bullishly. 

WFC finished five of its last eight post-earnings sessions lower, including a 6% drop this past June. Over the last two years, Wells Fargo stock averaged a 2.3% swing, regardless of direction, which is significantly smaller than the 6.1% move the options pits are pricing in this time around.  

Ahead of the event, Wolfe Research upgraded WFC to "outperform" from "peer perform" with a new $65 target price, saying the stock's valuation factors in the rate-sensitive financial sector. Of the 26 analysts in coverage, 11 carry a "hold" rating, while the 12-month consensus price target of $63.62 is a relatively slim premium to current levels, meaning more bull notes could arise should earnings beat estimates. 

On track for its third-straight daily gain, WFC was last seen 0.9% higher at $57.65. The stock is nearing the $59 level after an extended bounce off $50, mirroring a pattern that preceded negative price action roughly a month ago. However, this rally also used the steadily ascending 320-day moving average as a jumping-off point. The upcoming earnings report could either provide the momentum needed, or send WFC back towards that line of support. 

WFC Oct8

 

 

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
 (ad)