15 Best and Cheap Stocks to Buy According to Billionaires

9. Wells Fargo & Company (NYSE:WFC)

Forward P/E Ratio: 12.21

No. of Billionaire Investors: 18

Wells Fargo & Company (NYSE:WFC) is a leading financial services firm that offers banking, investment, mortgage, and finance products. It operates through four key segments including Consumer Banking & Lending, Commercial Banking, Corporate & Investment Banking, and Wealth & Investment Management.

On March 13, Gerard Cassidy from RBC Capital Markets upgraded WFC’s rating from Sector Perform to Outperform, with a new price target of $80. The analyst has confidence in the bank’s leadership and its strategic initiatives to improve profitability and regulatory compliance. In 2024, Wells Fargo & Company (NYSE:WFC) showed strong growth, especially in its credit card division. The company opened more than 2.4 million new credit card accounts. Whereas, credit card spending increased by over $17 billion compared to 2023. Wells Fargo has introduced 11 new card products since 2021, indicating dedication to product development amid higher demand.

Oakmark Fund 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 were optimistic that the financials sector would 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.”