Wells Fargo Is One of the Most Popular Bank Stocks on Robinhood. Should It Be?
Wells Fargo (NYSE: WFC) has been one of the worst-performing stocks in the financial sector. Not only has the COVID-19 pandemic hit Wells Fargo harder than its peers, but the bank's infamous "fake accounts" scandal and numerous other issues in recent years have caused the bank to underperform even beforehand. Since 2016, Wells Fargo's total return has been -46%, far below the 36% total return of the Financial Select Sector ETF (NYSEMKT: XLF) during the same period and dramatically lower than the 74% total return of the S&P 500.
Despite the poor performance, Wells Fargo is one of the most popular bank stocks among investors on the Robinhood stock trading platform. Nearly 98,000 Robinhood clients own shares of Wells Fargo – even more than larger rival JPMorgan Chase (NYSE: JPM). So, let's take a look at the reasons investors might want to buy Wells Fargo, the major risks and issues investors should know about, and whether it could be a smart long-term investment at the current level.
First, let's take a look at the reasons you might want to consider Wells Fargo for your portfolio.
Source Fool.com
