Jim Cramer Talked About These 11 Stocks Recently

7. Wells Fargo & Company (NYSE:WFC)

During the episode of Mad Money, Cramer called Wells Fargo & Company (NYSE:WFC) stock cheap. He said:

“Then there are the banks. We’ve had a bull market in banks for most of the year, but they really caught fire after Trump won the election. I think this move’s actually justified because bank regulators won’t be as tough and unforgiving as the Biden bunch and we’ll have many more mergers… With the changing of the guard at these agencies and among the bank examiners, the financials are simply worth more under Trump than they were under Biden, no kidding. Yet, even after this monster move, you know what? Their stocks are still cheap. Wells Fargo stock… it’s up 48% but trades at less than 14 times earnings. Average S&P stock sells for 23 times earnings and they’re not as good as Wells. Even if you think the S&P is dramatically overvalued, which I know some of you do, Wells Fargo stock is still absurdly cheap.”

Wells Fargo (NYSE:WFC) is a major global financial services institution, offering a broad range of banking, investment, mortgage, and financial products. In the last earnings call, CEO Charles Scharf highlighted the company’s transformation, noting that its earnings profile has changed significantly over the past five years. The company has focused on making targeted investments in various areas of its business while de-emphasizing or divesting from others.

In the third quarter of fiscal 2024, the company repurchased $3.5 billion in common stock during the quarter, bringing the total stock repurchases for the first nine months of the year to over $15 billion, a 60% increase compared to the same period last year. As a result of these efforts, the company’s diluted common share count decreased by 7% from the previous year, and by 22% over the past five years, demonstrating its focus on enhancing shareholder value.

Looking ahead, Wells Fargo (NYSE:WFC) management anticipates that net interest income for the fourth quarter of fiscal 2024 will be similar to that of the third quarter. This projection suggests a roughly 9% decline in full-year 2024 net interest income compared to 2023.