Wells Fargo & Co. stock trades under the ticker WFC & has shown recent bullishness that traders & investors should take a closer examination of.
WFC closed at $50.73/share on 1/3/2022, trading on above average volume for the year.
Wells Fargo & Co. WFC Stock’s Technical Broken Down
WFC Stock Price: $50.73
10 Day Moving-Average: $48.35
50 Day Moving-Average: $49.61
200 Day Moving-Average: $46.20
RSI: 58.63
MACD: -0.124
WFC stock completed a bullish MACD crossover yesterday, while also gapping up 5%+ & breaking out above its 10 & 50 Day Moving Averages.
Their next resistance level test will be at $50.81 & then at the $51.69 price level.
With an RSI still in the 50’s, there looks to be more gas in the tank to keep pushing WFC higher in the near-term.
Wells Fargo & Co. WFC Stock As A Long-Term Investment
Investors will find WFC stock’s valuation metrics to be appealing, with a P/E(ttm) of 11.92 & a P/B of 1.19.
They experienced 9% Quarterly Revenue Growth Y-o-Y, and also have a strong balance sheet.
WFC stock’s Total Cash (mrq) is $479.7B & their Total Debt (mrq) is $222.6B.
Wells Fargo’s dividend yield is 1.04%, which looks safe, and possible to be increased, as their Payout Ratio is only 11.9%
Due to all of these factors & more, 73.49% of WFC’s total share float is held by institutional investors.
Wells Fargo & Co. WFC Stock As A Short-Term Trade Using Options
Traders can capture WFC’s momentum using options in the near-term.
I am looking at the contracts with the 1/21 expiration date.
The $50, $51 & $52 calls all look appealing & highly liquid, making it easier to find a buyer for your trade.
There is very little open interest on their puts for this expiration date, with only the $52.50 & $53 having anything going on at the moment.
However, given that they have weekly expirations, I expect to see more liquidity flow into the puts in the coming weeks.
Tying It All Together
Investors & traders will both find interesting characteristics for WFC stock to fit their portfolio’s needs.
Investors will like their valuation & balance sheet, as well as their safe dividend yield.
Traders will like their liquid call options in a stock that has a lot of positive momentum behind it in the near-term.
All-in-all, it is worth taking a closer look at Wells Fargo & Co.’s stock.
*** I DO NOT OWN SHARES OF WFC STOCK ***