10 Best American Bank Stocks To Buy Now

4. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 72

Wells Fargo & Company (NYSE:WFC) is a financial services company that owns the Wells Fargo Bank, which is considered among the ‘Big Four’ banks in the United States. It also boasts a significant global presence, serving 68 million customers worldwide. The bank’s extensive network of branches and ATMs provides it a substantial edge over its smaller competitors.

WFC has been actively expanding its offerings. In January, the company partnered with Derivative Path to deliver a new foreign exchange payment solution, featuring over 120 currency swap options and tools, for regional banks in the US. Last year in September, Wells Fargo & Company (NYSE:WFC) announced a multi-year agreement with the Volkswagen Group of America, under which the former would become the preferred vehicle purchase financing provider for the Audi, Ducati, and Volkswagen brands in the country. The partnership is expected to commence in April 2025.

The company’s share price surged by 46.5% in the calendar year, 2024, driven by its robust financial performance. In its Q4 2024 investor letter, Oakmark Fund highlighted that Wells Fargo & Company (NYSE:WFC)’s share price continued its upward trajectory following Donald’s Trump victory in the November presidential elections, as investors pin hopes on relaxed regulations under the new administration to stimulate dealmaking activities. The fund is confident that the bank’s superior business mix and return potential will unlock further value ahead.

On January 15, Wells Fargo & Company (NYSE:WFC) posted better-than-expected earnings for the fourth quarter of fiscal 2024, with net income growing 47% from last year to reach $5.1 billion, translating to an EPS of $1.43 per share. The company also issued strong guidance on net interest income for fiscal 2025, which has resulted in a bullish sentiment around the stock.

According to Insider Monkey’s database for Q3 2024, 72 hedge funds held a stake in WFC, making it one of the best American stocks to buy now.