Wells Fargo & Company : The technical rebound will come to an end

02/07/2020 | 09:33am EST

David Meurisse

short sell Target price hit

Entry price : 47.73$ | Target : 43.7$ | Stop-loss : 50.1$ | Potential : 8.44%

In close proximity to the technical resistance zone that has been tested over several trading sessions, stocks in Wells Fargo & Company could experience a pullback over the coming trading sessions towards technical support levels based on daily closing prices. Investors should open a short trade and target the $ 43.7.

Strengths

• The company returns high margins, thereby supporting business profitability.
• Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
• The company's attractive earnings multiples are brought to light by a P/E ratio at 11.77 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, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
• 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.

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