Wells Fargo Stock Price Forecast - WFC at $83.09: Strong EPS Growth vs. Credit Headwinds

NYSE:WFC Price Action and Market Position

Wells Fargo (NYSE:WFC) trades at $83.09, climbing 0.74% in the latest session, pushing close to its 52-week high of $84.83 after rebounding from a low of $53.32. Year-to-date gains of 20.2% already outpace the S&P 500’s 12.9%, while one-year performance of +56.5% puts Wells Fargo among the best-performing U.S. banks. Over five years, WFC’s total return of +270.7% towers above the market’s +99.9%, re-establishing its position as a resurgent financial giant with a $266.1B market cap. See WFC’s real-time chart.

Earnings Growth and Analyst Forecasts

Second-quarter EPS of $1.60 exceeded consensus by 13.6%, marking four consecutive beats. Analysts now expect $6.06 EPS for 2025, nearly 12% higher YoY, with forecasts of $6.70–$6.71 EPS in 2026, another 11.5% expansion. Revenue is projected at $83.1B in 2025 before climbing to $86.6B in 2026, with growth picking up from 0.98% in 2025 to 4.16% the following year. Consistent earnings surprises and forward guidance have underpinned investor confidence, but expectations now demand sustained delivery.

Net Interest Income Pressures Emerging

Wells Fargo’s net interest income fell $215M YoY in Q2 2025, suggesting the peak may already be behind the bank. Guidance now points to flat NII of $47.7B in 2025, versus earlier forecasts of 1–3% growth. Even with the removal of the Fed’s $1.95T asset cap, lending margins remain stuck at 2.68%, reflecting a late-cycle slowdown. Consumer loan delinquencies ticked up to 2.76%, while mortgage delinquency rates rose 6 basis points. Corporate credit spreads remain tight at ~295 bps, but defaults have doubled since 2021, indicating rising systemic risk.

Diversified Revenue and Non-Core Gains

Non-interest income has cushioned NII weakness. Advisory and brokerage commissions grew in Q2, but earnings were also flattered by $462M in venture capital gains and $147M from debt securities. These one-off items lifted profitability but cannot be relied on for future quarters. Trading revenues weakened, and investment banking activity stayed subdued, leaving fee-based services as the most sustainable driver. Investors must discount the impact of non-core items when assessing earnings durability.

Capital Resilience and Liquidity

Wells Fargo’s balance sheet remains robust, with a 121% liquidity coverage ratio and a CET1 ratio of 11.1%, offering ample protection against shocks. Cash holdings reached $382.1B, nearly balancing total debt of $381.0B, although operating cash flow fell to –$9.14B ttm. Book value per share stands at $51.08, and the stock’s 1.61x price-to-book ratio is significantly above its five-year average of 1.08x, showing investor willingness to pay a premium for stability and capital strength.

Dividends and Yield Positioning

WFC pays an annual dividend of $1.80 per share, yielding 2.18% with a conservative 27.5% payout ratio. That marks an increase from last year’s $1.60 dividend, but the yield remains below the 2.40% five-year average and trails the U.S. 10-year Treasury by around 200 basis points. While dividend growth is likely, the stock is more attractive as a growth play than a pure income investment.

Valuation Metrics for NYSE:WFC

At 14.3x trailing P/E and 12.2x forward P/E, Wells Fargo is trading at a premium relative to its long-term averages. The PEG ratio of 1.6 signals investors are willing to pay for sustained growth. Profit margins remain healthy at 26.5%, with 11.5% ROE and 1.06% ROA. With revenue per share of $23.50 and earnings per share of $5.82, valuation multiples reflect optimism that the earnings uptrend will continue through 2026.

Technical Levels and Market Sentiment

Support levels are established around $80.49, with secondary support near $77.00, while resistance builds at $87.32. A breakout could lift shares toward $89–$95, but failure would see a retest of the low-$80s. Short interest has risen to 46.2M shares, or 1.45% of float, up from 39.7M, signaling increased hedging. Options flow shows a put/call ratio of 1.11, indicating a cautious stance, while the RSI at 51 reflects neutral momentum.

Peer Comparison and Industry Standing

Wells Fargo’s +56.5% one-year return stands well ahead of Citigroup (+18%), Bank of America (+22%), and even JPMorgan (+34%). At $266B market cap, Wells Fargo ranks below Bank of America and JPMorgan but outpaces Citigroup and UBS. Its business mix relies less on trading and investment banking compared to peers, but its retail dominance and cost-cutting have restored credibility with institutions that now hold 78.9% of the float. View WFC stock profile.

Verdict on Wells Fargo Stock

At $83.09, Wells Fargo is no longer undervalued. The bank has rerated to premium multiples, with its 1.61x P/B already pricing in strong EPS growth. Upside exists toward $87–$95 if earnings momentum continues, but stagnant NII and looming credit risks pose challenges. Dividend growth adds stability, though the 2.18% yield lags fixed income. Based on current data, NYSE:WFC is best rated a Hold — suitable for existing shareholders riding momentum, but offering limited risk-reward for new buyers at these elevated levels.

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