Even after being one of the largest banks in the world, Wells Fargo & Co was affected greatly by the coronavirus pandemic which took its stock down. The pandemic hit the banking sector drastically since the economy went down and a great deal of financial crisis arose. This year is most probably going to be the year of the recovery of losses and re-establishment for various companies of several sectors.
The year 2020 was an addition to the hurdles Wells Fargo was already going through. This year however can prove to be better for the stock as it is expected and analyzed. The pandemic is now slowing down and with the incoming of effective vaccines; the risk has reduced to a great extent. The lives are returning to normal and hence, the companies which underwent heavy losses in the last year can now buck up and work towards restoring their positions and becoming profitable once again.
Wells Fargo & Co (NYSE: WFC): Analyzing the Stock
The stock value of the company went down by a great extent, i.e. as much as 44% in the past year. It upheld itself during the last two months of the year but overall, the company faced a bad time in 2020. June was probably the worst month for the firm. The stock performance before 2020 was also not that good but the past year only made things worse for Wells Fargo.
Latest Statistical Figures and Data
- 52 Week Range: $20.76 – $48.50
- Average Volume: 39,157,925
- Market Capital: $128.154B
- Forward Dividend and Yield: 40 (1.33%)
The income of the Firm
The per-share income of the Wells Fargo stock went down by 31% (as compared to the year 2019) with the company earning just 64 cents per share. The total revenue of the firm came out to be just $18.1 billion which was another bad news. Almost everything for the company went down and the condition remained unfavorable.
Wells Fargo Stock: Restoring and Recovering
Coronavirus pandemic was the key reason for the downfall of the company’s stock and now since the pandemic is vanishing away, there is a very high probability that the problems of the company will also vanish away. Therefore, the company can stand out well in this year and improve its income and profit simultaneously.
Also, till then it is not a buy-now stock since the value is quite low and it is risky to buy a stock when it is in such a stage. The investors should patiently wait for the stock to become profitable and for the company to fully restore its position and then only invest here. When the stock will stabilize and the volatility of the stock will reduce then it would be a good choice for buying. The analysts have expected this year to work in favor of the company and the earnings this year might be much better as compared to 2020.