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Wells Fargo poised for growth after Fed lifts asset cap, with strong Q3 results and attractive valuation.

Company Fundamentals
06 Nov 2026, 15:00 WIB
Seeking Alpha
View Source
Bullish
Wells Fargo poised for growth after Fed lifts asset cap, with strong Q3 results and attractive valuation.

Wells Fargo is set for significant growth following the Federal Reserve's removal of its asset cap, allowing the bank to expand its balance sheet and lending activities. The bank's Q3 2026 results showed disciplined cost management, 12.7% earnings per share growth, and a 16.3% return on tangible common equity, making it an appealing investment. Trading at a forward price-to-earnings ratio of 11.96, Wells Fargo shares are undervalued by over 10%, with potential upside of 25% by 2027 and expected annual returns above 15% through 2031. Additionally, Wells Fargo's preferred securities offer attractive yields around 7%, providing steady income and capital preservation opportunities.

As of Nov 06, 2026 19:41 WIB, Wells Fargo (WFC) trades at USD 83.78 on Pluang, down 0.62% for the day and closer to its 52-week low of USD 73.42 than its high of USD 96.40. Despite the recent dip, its dividend yield stands at 2.36%, while the majority of Pluang users are selling, with 79% of order activity on the platform being sell orders. This contrasts with the article's optimistic outlook on Wells Fargo's growth potential and total returns through 2031.

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