Stock Research Report for WFC as of 8/17/11 - Chaikin Power Tools

Page 1

Wells Fargo-New (WFC)

Price: $24.57

Industry: Banks-Major Chaikin Power Gauge Report | Generated: Wed Aug 17 10:46 EDT 2011 WFC Wells Fargo-New

$24.57

Power Gauge Rating

WFC - Bullish TM

The Chaikin Power Gauge Rating for WFC is bullish due to very strong earnings performance and positive expert opinions. The rating also reflects bearish price/volume activity.

Financial Metrics

WFC's earnings performance is very strong as a result of a relatively low projected P/E ratio.

Earnings Performance

Expert opinions about WFC are positive which is evidenced by insiders purchasing stock.

Price/Volume Activity

Expert Opinions

News Sentiment Rating

Neutral WFC Wells Fargo-N..

August 17, 2011

TM

Chaikin Sentiment Gauge for WFC is neutral. Stories concerning WFC have a balanced or neutral sentiment.

News Sentiment :Neutral

Power Trend - 5 Year Chart

The Power Gauge distills a 20 factor model into a concise picture of a stock's potential.

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High Potential

Neutral

Low Potential

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Financials & Earnings

Financial Metrics

Financial Metrics Rating

Neutral

LT Debt/Equity Ratio

WFC's financial metrics are neutral. The company generates high free cash flow relative to market capitalization and is carrying too much long term debt.

Price to Book Value

The rank is based on a high long term debt to equity ratio, low price to book value, high return on equity, high price to sales ratio and relatively high cash flow.

Return on Equity

Price to Sales Ratio

Business Value

Assets and Liabilities

Valuation

Returns

Ratio

TTM

Ratio

TTM

Ratio

TTM

Current Ratio

0.95

Price/Book

1.03

Return on Invest

5.1%

LT Debt/Equity

1.32

Price/Sales

1.39

Return on Equity

11.9%

Earnings Performance

Earnings Performance Rating

Very Bullish

Earnings Growth

WFC's earnings performance has been very strong. The company is priced relatively low compared to next year's projected EPS and has a history of strong earnings growth.

Earnings Surprise

Earnings Trend

The rank is based on high earnings growth over the past 3-5 years, an upward trend in earnings this year, a relatively low projected P/E ratio and consistent earnings over the past 5 years.

Projected P/E Ratio

Earnings Consistency

5 Year Revenue and Earnings Growth

Revenue(M) Rev % Growth EPS EPS % Growth

EPS Estimates

12/06

12/07

12/08

12/09

12/10

47,979.00

53,593.00

51,980.00

98,636.00

93,249.00

18.74%

11.70%

-3.01%

89.76%

-5.46%

$2.52

$2.41

$0.76

$1.76

$2.23

12.00%

-4.37%

-68.46%

131.58%

26.70%

EPS Surprise

Factor

Actual EPS Prev

EST EPS Current

Change

$0.60

$0.72

+0.12

Quarterly EPS Yearly EPS Factor

$2.23

$2.82

+0.59

Actual EPS Growth

Est EPS Growth

Change

22.35%

8.33%

-14.02

3-5 year EPS

EPS Quarterly Results Estimate

Actual

Difference

% Difference

FY

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Total

Latest Qtr

$0.69

$0.70

$0.01

1 Qtr Ago

$0.67

$0.67

$0.00

1.45

12/09

$0.56

$0.58

$0.56

$0.08

$1.78

0.00

12/10

$0.45

$0.55

$0.60

$0.62

$2.22

2 Qtr Ago

$0.62

$0.61

3 Qtr Ago

$0.56

$0.60

$-0.01

-1.61

12/11

$0.68

$0.70

-

-

-

$0.04

7.14

Fiscal Year End Month is December.

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Price Trend & Expert Opinions Price/Volume Activity

Price/Volume Activity Rating

Bearish

Relative Strength vs Market

Chaikin Money Flow

Price and volume activity for WFC is bearish. WFC has underperformed the S&P 500 over 26 weeks and is experiencing sustained selling.

Price Trend

The rank for WFC is based on its relative weakness versus the market, negative Chaikin money flow and a positive Chaikin price trend ROC.

Price Trend ROC

Volume Trend

Relative Strength vs S&P500 Index

Chaikin Money Flow

Chart shows whether WFC is performing better or worse than the market.

Chaikin Money Flow analyzes supply and demand for a company's stock.

Price Activity

Price Activity

Volume Activity

Factor

Value

Factor

52 Week High

34.10

% Change Price - 4 Weeks

-13.59%

Average Volume 20 Days

48,876,736

52 Week Low

22.88

% Change Price - 24 Weeks

-22.43%

Average Volume 90 Days

39,825,883

% Change YTD Rel S&P 500

-16.93%

Expert Opinions

Value

% Change Price - 4 Wks Rel to S&P

-3.88%

% Change Price - 24 Wks Rel to S&P

-15.05%

Factor

Value

Chaikin Money Flow Persistency

42%

Expert Opinions

Bullish

Earnings Estimate Revisions

Expert opinions about WFC are positive. Insiders are net buyers of WFC's stock and analysts are raising their EPS estimates for WFC.

Short Interest

Insider Activity

The rank for WFC is based on analysts revising earnings estimates upward, a low short interest ratio, insiders purchasing stock, pessimistic analyst opinions and relative weakness of the stock versus the Banks-Major industry group.

Analyst Opinions

Relative Strength vs Industry

Earnings Estimate Revisions Current Current Qtr Next Qtr

0.72 0.73 Current

Current FY

2.82

Analyst Recommendations

7 Days Ago % Change 0.72 0.73

0.00% 0.00%

30 Days Ago % Change 2.78

0.04

Factor Mean this Week Mean Last Week

EPS Estimates Revision Summary Value

Buy 0.00

Mean 5 Weeks Ago

Buy

Last 4 Weeks

Down

Up

Down

Curr Qtr

0

1

10

2

Curr Yr

0

2

11

4

Next Qtr

0

2

9

3

Next Yr

0

2

12

5

Buy

Change

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Last Week Up

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The Company & Its Competitors

News Headlines for WFC

WFC's Competitors in Banks-Major Company

Power Gauge

Historic EPS growth

Projected EPS growth

Profit Margin

PEG

PE

Revenue(M)

WFC

22.35%

8.33%

15.97%

1.05

9.52

93,249

USB

4.55%

6.25%

19.73%

1.53

10.87

20,518

BBT

7.47%

6.75%

9.05%

1.75

15.30

11,072

JPM

22.29%

6.75%

19.85%

1.07

7.70

102,694

PNC

31.49%

6.67%

23.24%

1.15

7.35

17,096

2.80%

7.66%

12.35%

0.95

9.10

86,601

BAC

15.58%

7.80%

-14.72%

-

-

134,194

BK

14.72%

7.00%

18.14%

1.31

9.13

13,875

C

Wells Fargo and Related Companies Revitalize and Preserve Affordable Housing in Chicago’s Southside - Aug 8, 2011 Boulder developer Jim Chanin files for bankruptcy - Aug 6, 2011 FL Tepper FINRA claim 07 25 - Jul 25, 2011 Wells Fargo will turn spotlight on the arts - Jul 22, 2011 Wells Fargo will turn spotlight on the arts - Jul 22, 2011

Company Details

Company Profile

WELLS FARGO-NEW 420 MONTGOMERY STREET SAN FRANCISCO, CA 94163 USA Phone: 6126671234 Fax: 651-450-4033 Website: http://http://www.wellsfargo.com Full Time Employees: 272,200 Sector: Finance

Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. (Company Press Release)

Power Gauge Ratings are created using a relative ranking system that assigns a rank of 0 to 100 (100 being the highest) to each stock in the universe. Rank is calculated by evaluating each of the stocks factors and combining them into a single number using a weighting formula. A stock's rank ranges from 100-0, where 100 is the strongest, and a rank of 95 indicates the stock is better than 95% of the stocks in the universe. Chaikin Stock Research(CSR) is not registered as a securities broker dealer or investment advisor with either the U.S. Securities and Exchange Commission or with any state securities regulatory authority. CSR is not responsible for trades executed by users of this research report, our web site or mobile app based on the information included herein. The information presented in this report does not represent a recommendation to buy or sell stocks or any financial instrument nor is it intended as an endorsement of any security or investment. The information in this report is generic by nature and is not personalized to the specific financial situation of any individual. The user bears complete responsibility for their own investment research and should seek the advice of a qualified investment professional before making any investment decisions. Copyright (c) 1978-(Present) by ZACKS Investment Research, Inc ("ZACKS"). The information, data, analyses and opinions contained herein (1) includes the confidential and proprietary information of ZACKS, (2) may not be copied or redistributed, for any purpose, (3) does not constitute investment advice offered by ZACKS, (4) are provided solely for informational purposes, and (5) are not warranted or represented to be correct, complete, accurate or timely. ZACKS shall not be responsible for investment decisions, damages or other losses resulting from, or related to, use of this information, data, analyses or opinions. Past performance is no guarantee of future performance. ZACKS is not affiliated with Chaikin Power Tools. This report from Chaikin Power Tools is for informational purposes only and is not a recommendation to buy or sell securities.

LM 2.3 DS 3.0 LS 2.1

Data Provided by ZACKS Investment Research, Inc., www.zacks.com

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