Wells Fargo & Company Price & Performance (WFC)

Optimism grows among investors as Wells Fargo successfully resolves five regulatory actions this year, including two Federal Reserve consent orders. Analysts suggest the asset cap, imposed in 2018, could be lifted soon, enhancing growth potential. CEO Charlie Scharf’s focus on compliance has closed 11 orders since 2019, signaling improved corporate governance.12

RBC Capital has raised its rating for Wells Fargo's preferred stock from "Sector Perform" to "Outperform," reflecting increased confidence in the bank's financial outlook. Institutional ownership of the stock has seen slight changes, with some funds increasing their positions while others reduced portfolio allocations. The upgrade highlights Wells Fargo's growing appeal.34

Wells Fargo economists project that mortgage rates will remain above 6% until 2026, citing limited housing inventory and slow construction activity. Despite anticipated Federal Reserve rate cuts, borrowing costs are unlikely to drop significantly. The bank foresees challenges for homebuyers as affordability pressures persist in the housing market.5