Wells Fargo & Company : The decline is confirmed

03/05/2020 | 09:57am EST

David Meurisse

short sell Target price hit

Entry price : 40$ | Target : 35.1$ | Stop-loss : 42.1$ | Potential : 12.25%

The declining trend in the stock price that has been seen for a number of trading sessions, should not be expected to reach a turning point over the coming days. Investors should open a short trade and target the $ 35.1.

Strengths

• The share is getting closer to its long-term support in weekly data, at USD 40.85, which offers good timing for buyers.
• The close medium term support offers good timing for purchasing the stock.
• The group's activity appears highly profitable thanks to its outperforming net margins.
• Considering the small differences between the analysts' various estimates, the group's business visibility is good.
• The company's attractive earnings multiples are brought to light by a P/E ratio at 10.28 for the current year.
• This company will be of major interest to investors in search of a high dividend stock.

Weaknesses

• According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
• The company's earnings releases usually do not meet expectations.
• For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
• For the past seven days, analysts have been lowering their EPS expectations for the company.
• For the last few months, analysts have been revising downwards their earnings forecast.
• For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
• Below the resistance at 48.22 USD, the stock shows a negative configuration when looking looking at the weekly chart.

© MarketScreener.com 2020

	Stocks mentioned in the article	Change	Last		1st jan.
	AT HOME GROUP INC.	12.76%	28.07		61.25%
	BYD COMPANY LIMITED	2.50%	254.6		25.30%
	WELLS FARGO & COMPANY	-0.03%	31.9275		5.70%

Disclaimer: The information, charts, data, views, or comments provided by SURPERFORMANCE SAS are intended for investors who have the necessary knowledge and experience to understand and appreciate the information contained within. These items are disseminated for personal reference only. They do not constitute an offer or solicitation to buy or sell financial products or services, nor an investment advice.
The use of the information disseminated takes place under the investor's sole responsibility, without recourse against SURPERFORMANCE SAS. SURPERFORMANCE SAS will not be liable, whether in contract, in tort, under any warranty, for errors, omissions, improper investments, or adverse evolution of markets.