Morningstar Rating

Stock Research and Analysis

by Jim Sinegal

Bulls Say

Wells Fargo's earnings power will improve from current levels as credit quality improves, interest rates rise, and the company cuts costs.
Wells Fargo's business model is difficult to duplicate. Future CEOs are likely to have been steeped in the company's culture for decades, ensuring that the company's competitive advantage is maintained.
The bank has room to squeeze more revenue out of former Wachovia customers by expanding the number of products and services sold to each customer. Read more 

Bears Say

Increased regulation and the continuing deflation of a decades-long debt bubble will result in low levels of profitability for the foreseeable future.
The costs associated with past mortgage missteps will continue to rise as homeowners and regulators target the bank, making the final extent of Wells Fargo's liability difficult to predict.
Profitable growth will be difficult--if not impossible--to come by for the nation's largest banks. Read more 

Management

Wells Fargo's management has proved its merit over the years, quadrupling tangible book value per share during the past decade and developing a base of low-cost deposits that is the envy of the industry. We believe this is enough evidence to categorize   Read more 

Profile

Wells Fargo is one of the four largest banks in the U.S., with well over $1 trillion in assets. The company is split into three segments for reporting purposes: community   Read more 

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