Jim Cramer’s 5 Latest Stock Picks This Week

1. Wells Fargo & Co (NYSE:WFC)

Number of Hedge Fund Investors: 72

While talking about a regional bank during his latest program on CNBC, Jim Cramer said his favorite bank stock right now is Wells Fargo & Co (NYSE:WFC). Cramer believes Wells Fargo has been a “juggernaut” for his charitable trust.

As of the end of the fourth quarter of 2023, 72 hedge funds tracked by Insider Monkey had stakes in Wells Fargo & Co (NYSE:WFC).

Here is what Davis New York Venture Fund has to say about Wells Fargo & Company (NYSE:WFC) in its Q3 2023 investor letter:

“In spring 2023, a number of high-profile regional banks, none of which we owned, collapsed over the course of a few weeks. In contrast, the select, large banks we own, including Wells Fargo & Company, actually saw deposit inflows and increasing profits, reinforcing our thesis that high-quality financial services companies remain among the most misunderstood and attractive sectors of the market. This stress test models a dramatic recession—one meaningfully worse than the great financial crisis of 2008-2009. It includes a 3.5% decline in gross domestic product, a 10% unemployment rate, a 37% decline in residential real estate, a 40% decline in commercial real estate and a 55% decline in the stock market. The resilience and strength required to weather such an economic storm combined with proven economies of scale in branding and technology should drive DNYVF market share gains and growth for years to come. Trading at some of the lowest valuations in the market, our financial sector holdings—such as Wells Fargo & Company, deserve to be revalued upwards over time. In the meantime, increasing dividends and a shrinking share base create value while we wait.”

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