11 Most Undervalued Quality Stocks to Buy Now

Page 10 of 10

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

Forward P/E Ratio as of April 14: 10.93

Number of Hedge Fund Holders: 96

Wells Fargo & Co. (NYSE:WFC) is a financial services company. It has four segments: Consumer Banking & Lending, Commercial Banking, Corporate & Investment Banking, and Wealth & Investment Management. It also operates through financial advisors in brokerage and wealth offices, consumer bank branches, independent offices, and digitally through WellsTrade and Intuitive Investor.

The company’s revenue in the Consumer Small & Business Banking area fell by 2% year-over-year in 2024. This was attributed to higher deposit costs which shows that customers are shifting towards higher-yielding deposit products. However, deposit balances grew year-over-year and marked the first such increase since Q4 2022.

The company’s debit card spending remained strong and was up 4% year-over-year. The credit card business grew by 2% due to higher loan balances. Wells Fargo & Co. (NYSE:WFC) is now investing in refurbishing branches and enhancing digital and branch account opening experiences to improve customer experiences and drive new account growth. It’s also growing its card business with the help of investments that increase balances and spending. 

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.”

While we acknowledge the growth potential of Wells Fargo & Co. (NYSE:WFC), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WFC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 10 of 10