Wells Fargo CompanyWFC

Morningstar Rating

Stock Research and Analysis

by Jaime Peters, CFA, CPA

Wells Fargo operates a simple but effective strategy: Build deep customer relationships and keep a close eye on credit quality. Superior execution of this sound strategy has created an economic moat and industry-leading returns year after year. The Read more

Bulls Say

Wells Fargo has continually boosted profits from its existing customer base through improved cross-selling.

Wells Fargo is a market-share leader in online banking. Online customers tend to be more profitable than traditional banking clients.

With Wachovia, Wells has national scale.

Wells repaid TARP, keeping it on an even playing field with its other large competitors. Read more

Bears Say

With the addition of Wachovia, Wells' home equity portfolio has increased. This portfolio makes us nervous because a substantial portion of the portfolio is junior lien and in the hard-hit Florida and California markets.

Wells Fargo is a slow merger integrator. Rather than derive merger benefits through a slash-and-burn cost-cutting strategy, the company attempts to double revenue per acquired branch. Read more

Strategy

Wells Fargo seeks to form deep long-term customer relationships. With a complete array of deposit products, loans, and investments, the company aims to gain as much share of its customers' "wallet" as Read more

Management

CEO John Stumpf will assume the chairman role--a year later than originally expected--after Dick Kovacevich retires at the end of 2009. Stumpf has been with the company since 1982 and was named president in 2003. With Wells Fargo's strong culture and Read more

Profile

With the purchase of Wachovia, Wells Fargo has become a nationwide bank and is the fourth largest in the U.S. The combined entity has $1.2 trillion worth of assets and 6, Read more

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