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

03/30/2020 | 09:13am EST

David Meurisse

short sell Target price hit

Entry price : 30.36$ | Target : 22.5$ | Stop-loss : 34.1$ | Potential : 25.89%

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 $ 22.5.

Strengths

• The group's activity appears highly profitable thanks to its outperforming net margins.
• The company's attractive earnings multiples are brought to light by a P/E ratio at 8.31 for the current year.
• The company is one of the best yield companies with high dividend expectations.

Weaknesses

• As estimated by analysts, this group is among those businesses with the lowest growth prospects.
• The group usually releases earnings worse than estimated.
• Revenue estimates are regularly revised downwards for the current and coming years.
• 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 twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
• 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 38.2 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.	-2.95%	22.73		47.02%
	BEST INC.	-3.83%	2.01		-1.47%
	WELLS FARGO & COMPANY	-7.80%	32.04		6.16%

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