11 Best Undervalued Stocks to Invest in Now

3. Wells Fargo & Company (NYSE:WFC)

Forward P/E Ratio: 13.33 

Earnings Growth This Year: 4.95% 

Number of Hedge Fund Holders: 96

Wells Fargo & Company (NYSE:WFC) is another notable large financial services company that offers a wide range of financial products and services. Its services range from banking services, and investment services, to mortgage and commercial banking. The company operates in all 50 US states. On March 5, John Pancari from Evercore ISI maintained a Buy rating on the stocks, with a price target of $91.

During the fiscal fourth quarter of 2024, the company posted a revenue of $20.3 billion, indicating a slight decrease of 0.5% year-over-year. On the bright side, the net income increased from $3.4 billion to $5.07 billion. Management noted that the increase was driven by a 15% year-over-year increase in fee-based revenue which helped subside the decline in net interest income. The investment banking sector of Wells Fargo & Company (NYSE:WFC) has gained significant traction. During the fourth quarter, investment banking fees surged by 59% year-over-year. It is one of the best-undervalued stocks to invest in now.

Oakmark Fund stated the following regarding Wells Fargo & Company (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.”