7 Best Bank Stocks To Buy in 2024

4. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Investors: 83

Wells Fargo, which was founded in 1852, is presently the fourth-largest bank in the US. It offers a comprehensive range of financial services and products and is operating in 35 countries globally. The US-based financial company provides a wealth of resources for financial education as well as individualized assistance from financial advisors.

The second-quarter 2024 earnings of Wells Fargo & Company (NYSE:WFC) surpassed average estimates for both the top and bottom lines. Nevertheless, the business underperformed on net interest income, a critical indicator for banks, and since Q4 2022, it has decreased each quarter. Its net interest income, which measures the difference between interest revenue earned from loans and interest expenses, declined 9% YoY, and the bank now expects an 8-9% drop in net interest income this year.

One of the “9 Best Financial Services Stocks To Buy Now” has strengthened its trading and investment banking operations under Scharf, hiring a few senior executives from competitors. In the second quarter of 2024, Wells Fargo’s revenue from investment banking increased by 38% to $430 million YoY.

The firm is nevertheless limited by a $1.95 trillion asset limitation and continuous regulatory oversight in spite of its expansion.

Analysts anticipated stronger net interest income as part of the investor “bull thesis” entering into the quarter, thus, management’s lowered outlook for NII is expected to put pressure on the stock, according to Citigroup analyst Keith Horowitz in a note.

Wells Fargo & Company (NYSE:WFC) is sticking with its multi-year restructuring, focusing on cost-cutting to increase its efficiency ratio and putting an asset cap in place until 2024. In addition, the bank is rebuilding its wealth segment, middle-market investment banking, and its card business.

Natixis Global Asset Management’s Harris Associates is the largest shareholder in the company, with 21,386,721 shares worth $1.27 billion.