10 Most Profitable Value Stocks to Buy Now

5. Wells Fargo & Co. (NYSE:WFC)

TTM Net Income as of March 13: $19.722 billion

Forward P/E Ratio as of March 13: 11.89

Number of Hedge Fund Holders: 96

Wells Fargo & Co. (NYSE:WFC) provides financial services globally through banking, investment, mortgage, and finance products. It operates through four key segments: Consumer Banking & Lending, Commercial Banking, Corporate & Investment Banking, and Wealth & Investment Management.

The company’s credit card division expanded in 2024. The company opened over 2.4 million new credit card accounts. Credit card spending surged by more than $17 billion compared to the previous year. The company launched 11 new card products since 2021, which reflected the dedication to product development. This resulted in a 3% revenue increase year-over-year, which was driven by higher loan balances and increased spending.

Wells Fargo & Co. (NYSE:WFC) has maintained strong credit standards during this growth. While average loans declined throughout most of the bank, credit card balances increased. The company will now continue to monitor the credit card portfolio, and improve its digital capabilities, marketing efforts, fraud capabilities, and private decisioning.

Oakmark Fund highlighted the company’s strong Q3 2024 earnings, efficient cost management, share repurchases, and positive market sentiment to reinforce the fund’s belief in the company’s competitive advantage and value potential. It stated the following regarding Wells Fargo & Co. (NYSE:WFC) in its Q4 2024 investor letter:

“Wells Fargo & Company (NYSE:WFC) was the top contributor during the quarter. The U.S.-headquartered diversified bank’s stock price rose after reporting what we see as solid third-quarter earnings where the company’s efficiency ratio continued to improve as expenses were well controlled. The fee income segment also performed well, growing 12%. In addition, Wells Fargo had the opportunity to repurchase $3.5 billion in shares during the period, bringing the full-year repurchase to roughly $16 billion. In November, the stock price continued its upward trend following the U.S. presidential election as investors are optimistic that the financials sector will benefit from looser regulations and lower corporate taxes, thus stimulating a better environment for dealmaking. We continue to believe that Wells Fargo is a competitively advantaged bank that can use its superior business mix and return potential to unlock further value.”