11 Cheap NYSE Stocks to Invest in According to Hedge Funds

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

Forward P/E Ratio as of April 8: 10.72

Number of Hedge Fund Holders: 96

Wells Fargo & Co. (NYSE:WFC) is a financial services company that provides diversified banking, investment, mortgage, and consumer & commercial finance products and services internationally. It operates through four segments: Consumer Banking & Lending, Commercial Banking, Corporate & Investment Banking, and Wealth & Investment Management.

The company’s credit card division added over 2.4 million new accounts in 2024 and experienced a $17 billion improvement in spending year-over-year. Due to higher loan balances and increased spending, the company launched 11 new card products since 2021 has contributed to a 3% revenue rise. Despite overall loan declines within the bank, credit card balances grew, which reflected strong credit standards.

The company’s expenses also fell by 12% in 2024, mainly due to lower FDIC assessments and cost efficiencies. However, higher compensation and tech costs offset some savings. Credit loss provisions decreased overall, excluding credit cards. RBC Capital Markets analyst Gerard Cassidy recently increased Wells Fargo & Co.’s (NYSE:WFC) rating from Sector Perform to Outperform.

Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding Wells Fargo & Company (NYSE:WFC) in its Q4 2024 investor letter:

“Wells Fargo & Company (NYSE:WFC) is one of the nation’s largest depositories and banks by assets. In addition to having a very high market share of deposits, they also enjoy high market share within the geographies they operate in such as western and southeastern US. In our opinion, WFC is one of the best franchises in banking with a history of very high returns on assets and equity. Performance over the quarter was strong due to potential deregulation with the onboarding of a new presidential regime and speculation that the company’s asset cap could be lifted as early as 1H25.”