Jim Cramer’s Latest Calls: Top 10 Stocks

4. Wells Fargo & Co (NYSE:WFC)

Number of Hedge Fund Investors: 73

Cramer was recently asked about fintech company Enova Internationa. He instead recommended Wells Fargo as a better buy.

“It’s untraditional lending. I am just as traditional as I say go with the stock that collapsed over the last week, go with Wells Fargo,” Cramer said.

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.

Like Cramer, many other analysts are praising the management’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.”