Wells Fargo & Company (NYSE:WFC)

Undervalued by Peter Lynch 15x PE chart. Profit increasing. Sell at $50.

Wells Fargo does basic banking- mortgages, credit cards, checking and savings deposit accounts, insurance and brokerage. Domestic banking, with scale, and customer relationship building.

Quality of the business and catalyst is leverage to recovering property market.

wells fargo is going to benefit from a strengthening economy and rising interest rates. in the past year, it grew its earnings per share by 23%. while that is unlikely to continue at that rate (more likely at 8%), it is currently trading at a respectable 11.6x earnings. the stock should continue to do well with a growing dividend and stock repurchases going forward.

Buffett likes this bank so I'll follow his lead.

PE of 10. 3% dividend. Good year over year growth. Generally more positive perception in the public of the company. Mortgage whoas behind. Mostly US exposure.

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

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