We recently published a list of Jim Cramer’s Top 11 Trump Trades: Winners and Losers. Since Wells Fargo & Co (NYSE:WFC) ranks 5th on the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the consequences of the failed assassination attempt on Donald Trump and mentioned a few stocks that could benefit if the former President comes to power again.
“You are sticking your head in the sand if you think nothing has changed after the failed assassination attempt on the now-official Republican nominee for President.”
Cramer said that the “frightening moments” of the assassination attempt have indeed “cut in the favor” of Trump’s win and he was “already leading in the polls.”
Cramer recalled the days when he was the anchor of Kudlow & Cramer show and Biden was a senator from Delaware. Cramer said Biden once told him that he was the “poorest senator out of one hundred because he owned no stocks.”
“He was actually bragging about it,” Cramer said.
Cramer said that Joe Biden is not the “champion” of stocks and he’s “on board with labor.”
Jim Cramer’s Thoughts on Donald Trump
Here’s what Cramer said about Trump:
“In the many years I’ve known Trump and I have known him fairly well, he’s been wildely pro stock market, always watching it like a hawk. He loves bantering about the stock market.”
Cramer said that even though Trump was in “real estate, he enjoyed stocks.”
Jim Cramer added that Trump always thought there was too much regulation and was also “wildly” pro-oil and gas. The CNBC host said since Trump cannot see the stock market going down and sees the market gains as a positive factor even for his presidency, his arrival in the White House could boost stock portfolios.
“Hate him or like him, he’s good for your portfolio.”
For this article watched the latest programs of Cramer where he mentioned stocks that could benefit from a Trump presidency. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Wells Fargo & Co (NYSE:WFC)
Number of Hedge Fund Investors: 73
Jim Cramer recently listed Wells Fargo & Co (NYSE:WFC) as a financial stock that can benefit from a Trump presidency. Cramer’s charitable trust also owns a stake in the company. Wells Fargo & Co (NYSE:WFC) recently said it expects to increase its third quarter 2024 common stock dividend by 14 percent to $0.40 per share.
In another program, Jim Cramer was asked by a caller whether Morgan Stanley is a good stock pick in the banking industry. Cramer instead pitched Wells Fargo & Co (NYSE:WFC) as a better buy.
“The only one I’d still buy in that group is Wells Fargo of Charlie Scharf (WFC CEO). That would be the stock to buy.”
Like Cramer, many other analysts are praising Charlie Scharf’s plans to make Wells Fargo & Co (NYSE:WFC) efficient. During the first quarter the company saw a 10% increase in investment banking revenue, while trading revenue jumped 15% increase YoY, amounting to $1.8 billion. The bank has notably expanded its credit card portfolio, with card balances increasing by 30% from FY19 to FY23. This growth is fueled by new product offerings and a focus on high-quality customers, with over 80% of credit cardholders having FICO scores above 660.
In 2024 Wells Fargo & Co (NYSE:WFC) is expected to generate about $23 billion of pre-tax income, and $25 billion in 2025. Analysts believe the Federal Reserve could lift restrictions (imposed following compliance issues in 2016) from the bank, including the asset cap, this year, unlocking further growth catalysts.
ClearBridge Value Equity Strategy stated the following regarding Wells Fargo & Company (NYSE:WFC) in its fourth quarter 2023 investor letter:
“Stock selection in the financials sector proved to be the largest contributor to relative outperformance. Banking stocks such as Wells Fargo & Company (NYSE:WFC) saw their share price rise during the quarter as investors anticipated Fed rate cuts that would reduce deposit costs while retaining economic strength and minimizing the risk of credit losses.”
Overall, Wells Fargo & Co (NYSE:WFC) ranks 5th on Insider Monkey’s list titled Jim Cramer’s Top 11 Trump Trades: Winners and Losers. While we acknowledge the potential of Wells Fargo & Co (NYSE:WFC), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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 the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.