5 Jim Cramer Stock Picks This Week

2. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 90  

Wells Fargo & Company (NYSE:WFC) provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. On December 20, Jim Cramer said during his Mad Money show that banks, including Wells Fargo, could be tremendous performers if the Fed stopped bringing the pain at some point in 2023. Cramer also called the stock a great turnaround story for 2022.

On December 21, Citi analyst Keith Horowitz maintained a Buy rating on Wells Fargo & Company (NYSE:WFC) stock and lowered the price target to $48 from $50, noting that the company’s settlement with the consumer financial protection bureau is said to be a costly step forward.

At the end of the third quarter of 2022, 90 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in Wells Fargo & Company (NYSE:WFC), compared to 84 in the preceding quarter worth $7.2 billion. 

In its Q3 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Wells Fargo & Company (NYSE:WFC) was one of them. Here is what the fund said:

“Wells Fargo & Company (NYSE:WFC) has been a long-time holding in the Oakmark Fund. Despite the positives of higher interest rates and the company making good progress on reducing expenses and regulatory consent orders, Wells Fargo shares have fallen one-third from their highs earlier this year to roughly 6.5x our estimate of normalized earnings power, and the stock ended the quarter at ~1x next year’s tangible book value. We find this is far too cheap for a strong banking franchise capable of tangible returns in the low-to-mid teens across business cycles.”