Wells Fargo (NYSE:WFC) has been ramping up its credit card portfolio to capitalize on improved commercial and consumer loan activities this year with the fast-paced economic recovery. Moreover, an improvement in the commercial mortgage-backed securities market and a significant increase in total client assets should lead to a substantial improvement in its primary business segments. Since the stock’s price has declined 10.9% over the past month, let’s evaluate if this is an opportune time to bet on the name. Read on.Leading financial services company Wells Fargo & Company (WFC) offers banking, investment, and commercial finance and mortgage services in the United States and overseas. The company operates in the consumer banking and lending, commercial banking, corporate and investment banking, and wealth and investment management segments.
A significant improvement in commercial mortgage-backed securities gains, in addition to improved trading and higher investment banking fees, have helped WFC deliver strong results in the first quarter of 2021. The stock has gained 66.1% over the past nine months and 38.3% year-to-date. However, its shares have retreated 10.9% over the past month.
Closing yesterday’s session at $41.75, WFC is trading 13.3% below its 52-week high of $48.13. With a strong U.S. economic recovery, both consumer and commercial loans are expected to witness a significant uptick in demand. This should help drive the company’s growth and improve its business operations and efficiency. Furthermore, accelerated we think consumer investment and spending should allow WFC to deliver impressive returns in the near term.