Wells Fargo: Time to Climb Aboard the Stagecoach
Wells Fargo (NYSE: WFC) has had more than its share of issues in the recent past. A combination of a fraudulent accounts scandal, asset cap, and lack of a CEO (until recently) has led to a period of significant underperformance relative to the sector. Over the past five years, Wells Fargo has lagged the broader financial sector by 50%.
The comparison is even starker against its large-cap peers: JPMorgan Chase and Bank of America have risen more than 100% and 90% respectively, while Wells Fargo is up only 1%. Not surprisingly, this period of underperformance is now reflected in a valuation that is cheap both relative to its historical range as well as other bank stocks.
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Source Fool.com
