Wells Fargo Gears Up For Earnings

Citigroup upgraded WFC ahead of the bank name's earnings

Deputy Editor
Apr 11, 2022 at 1:01 PM
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Bank stocks are in focus this week, as a number of financial institutions are slated to step into the earnings confessional. Wells Fargo & Co (NYSE:WFC), for instance, is slated to report first-quarter results before the market's open on Thursday, April 14, and analysts are estimating profits of 82 cents per share. Below, we'll take a closer look at Wells Fargo's earnings history and its current technical setup.

In the last eight quarters, Wells Fargo stock has had a negative earnings reaction five times. In the last two years overall, WFC averaged a 4.6% move the day after earnings, regardless of direction. This time around, the options market is pricing in a slightly larger 6.9% post-earnings move. 

On the charts, the equity managed to nab a four-year high of $60.30 in early February. The shares have pulled back in the time since, staging bounces off the $46 region. While Wells Fargo stock was last seen up 1.8% today to trade at $49.62, the 180-day moving average is keeping a firm lid on further gains. Longer-term, WFC is 22.3% higher in the last 12 months.

WFC Chart April 11

Citigroup is targeting the security ahead of earnings, upgrading WFC to "buy" from "neutral," though the firm slashed its price target to $56 from $58. The majority of covering brokerages are already bullish toward the stock, with 11 out of 13 rating it a "buy" or better. The 12-month consensus price target of $61.09, meanwhile, is a 23.2% premium to Wells Fargo stock's current level of trading.

 

 

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