Wells Fargo & Company (NYSE:WFC)

Unedited excerpt from a CAPSCall article anticipated for publication on 24-MAY-2013:
The next selection for the Inflation-Protected Income Growth Portfolio is banking titan Wells Fargo (NYSE: WFC). One of the few major banks to have recovered its dividend to nearly its pre-financial-crisis level, and one that even noted value hunter Warren Buffett is willing to buy, Wells Fargo stands out for its strength.

It’s true that the financial crisis did force Wells Fargo to cut its dividend, but that was due in large part to its acquisition of troubled bank Wachovia amid that crisis. The company’s relatively quick recovery suggests that the blow was painful, but not fatal. So long as the company learned from that experience and stays away from buying severely troubled assets in the future, it should be well positioned for the future.

conservative bank should rebound better than the others

M* Ultimate Stockpickers

I'm with Buffett.

housing is on a tear

Dividend growth.

A+. Not subject to European hysteria + its Buffetts bank choice,what else do you need?

Best of the big banks, huge share of the new housing market. A quarter of Buffett's portfolio.

Although it appears that Wells Fargo is in a strong position, I think it has more to do with the analysts' predictions and ratings than Wells Fargo itself. I don't have any solid evidence to back this up, but my prediction is that analysts will expect many of the big banks to perform well in the next couple years and they will fall short of those predictions slightly.

Banks should be doing a turn around

Buffett likes it, and the results of the upcoming stress tests should allow them to increase dividends and push up the stock price.

WFC has been consistent and has less risk then other major banks. WFC is also the target of a great deal if interest by large investment sharks so if you don't believe in my reasoning what are your excuses when the sharks are circling

WFC is one of my top picks as it offers EPS visibility compared to money center peers and EPS defensibility relative to regional peers. At 1.5x TBV, WFC is trading at only 0.5x above its Mar. 2009 trough, despite 17% ROTE potential. Given its concentration in resi real estate, WFC is not immune to a weak consumer, but I believe I have fully reflected this in my estimates and still find valuation compelling.

Nice div of 2.84% and we see mergers coming on which throws big fees to banks. Buffet sees banks capital at big security blanket. this will offset some high flyer picks like Westport. solid and too big to fail

At first glance, you may be disappointed with Wells Fargo's lack of growth in interest income since the market bottom in '09 considering their increase in investments. However, it is merely the restrictions in loan requirements that is bringing this figure down. Earnings per share growth is still phenomenal carried mostly by their booming operating income. Investors still seem to be hesitant with this one. The sentiment is likely to change over time and I believe it is best to hop on now while it is still cheap at a P/E of 10.

Simply put, Wells Fargo is the grown-up in the room. And on the cusp of a significant housing recovery, WFC is poised for a corresponding rise.

Best exposed to the housing recovery and mortgage markets out of the 4 big banks.

RJ pick

bought in RL under 34

expect nice earnings, and 1.5-2.0% rise in stock price in 2 days after earnings.
After that always ready to sell, and wait for another correction.
target price is max 37. ROE for our Wells is aproaching peak levels in modern banking.

best bank on the world, if I may :)
Dividend will rise only after stress test, so patient people could wait 2 months for that.