Wells Fargo and Company (WFC.s) is a financial services company with operations around the world and the third best bank in the United States in terms of asset quality and capitalization $148.2B. The bank is expected to announce its earnings for the first fiscal quarter ending in March 2023 Friday 14th April before the market opens.
zacks Wells Fargo positions ranked #3 (Catch) in the fund 22% position # 197/250 of the banking industry – regional specialties. EPS from $1.15 This report is expected (as is the Nasdaq) with an ESP of 6.32% although a more accurate estimate is $1.22, recording an increase of 30.68% year-on-year. he won $20.29B It is expected to be an increase of 15.36% year-on-year.
The grade contains 4 downward revisions and 1 upward revision in the last 60 days. Wells Fargo has a price-to-earnings ratio 8.20 The price-earnings ratio and growth value 0.80. The company has reported results above estimate 9 times out of the last 10 reports, with the only negative result in July 2022.
The company posted better-than-expected earnings per share last quarter $0.67 vs expect $0.63 With surprising EPS from 6.35% and revenue $19.66 billion under -6% O/O, due to various issues surrounding litigation and regulatory affairs.
Wells Fargo’s annual price forecasts are forecasts will be lower at $36.00 (-8.6%) and the highest expectation at $65.00 (+65.1%) while the average price is at $48.15 (+ 22.3%).
The regional banking crisis situation in the US is likely to be beneficial for Wells Fargo (and other large institutions), as investors can boost their confidence in large banks, perceiving them as safer due to their crisis management, coupled with the fact that deposits withdrew from other smaller institutions You will be expected to transfer to larger organizations such as the WFC.
Another favorable thing is the slowdown in rate hikes by the Fed (which expects a final 25bp increase on May 3), given that although inflation is currently still high at 6.0%, it has been consistently lower, dropping Total by 3.1%. Compared to the June maximum, which may open investors’ appetite for risk, although the fear of recession is still lurking.
The deterioration in consumer credit in the last quarter, due to higher interest rates, is expected to continue to affect the bank.
On the employment front, though, the unemployment rate came in better than expected 3.5%Just 236k Jobs were added last month, worse than expected vs 239k weather forecast. Average hourly earnings came in lower at 4.2% versus 4.3% year-over-year while month-over-month was steady at 0.3%, data that points to a softening labor market, which WFC analysts say is in line with the Fed’s 2% target.
Technical Analysis – Wells Fargo W1 – $39.47
#Wells Fargo (WFC.sA bearish flag pattern started in April 2022, and in this first quarter, the price witnessed a final upward bounce, leaving highs at $48.83 To fall by -27.6%, breaking the pattern lower and leaving the bottoms at $35.25.
At the moment, the price is reversing in line with the pattern to the area between Fibonacci 38.2% at $40.44 and 61.8% Fibonacci retracement $43.64although $40.00 The level would act as an immediate boundary, with rejection expected at that level or region before a pullback to a pattern target near the January 2021 lows at $30.00 – $31.20.
On the contrary, to restore the bullish bias, the price must surpass and maintain it $45.00. If that happens, the price could test this first quarter’s highs and if it surpasses them, it could climb to February 2022 highs in $60.20.
Click here To access our economic calendar
Aldo W Zabin
Market analyst
Disclaimer: This material is provided as general marketing communication for informational purposes only and does not constitute independent investment research. Nothing in this communication contains, or should be deemed to contain, investment advice, investment recommendation or solicitation for the purpose of buying or selling any financial instrument. All information provided is collected from reputable sources and any information containing an indication of past performance is not a guarantee or a reliable indicator of future performance. Users acknowledge that any investment in leveraged products is characterized by a certain degree of uncertainty and that any such investment involves a high level of risk for which the Users are solely responsible. We accept no liability for any loss arising from any investment made based on the information contained in this communication. This communication must not be reproduced or further distributed without our prior written permission.