Wells Fargo (WFC) is currently trading at a demanding valuation despite its low growth business prospects and regulatory constraints. Even though the bank has a sound and stable business profile, it doesn't seem to have much upside in the short-term especially until the regulatory asset cap is lifted. Thus, it doesn't seem to offer value for investors right now, and I rate it a sell.
Company Overview
Wells Fargo is a bank holding company, offering diversified financial services including banking, insurance, investments, and consumer finance. It was founded in 1852 and has nowadays a market capitalization of about $250 billion.
It is among the five largest banks in the U.S. with more than 8,500 bank branches, operates nationwide, and has offices in 42 countries around the world. Its main competitors are other large U.S. banks, such as JP Morgan(JPM), Citigroup (C), or Bank of America (BAC).
