10 Best Banking Stocks to Buy According to Hedge Funds

3. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 76

Wells Fargo & Company (NYSE:WFC) is one of the 10 best banking stocks to buy according to hedge funds.

As of the close of play on February 23, consensus sentiment around Wells Fargo & Company (NYSE:WFC) remained moderately bullish. The stock received coverage from 19 analysts, 10 of whom assigned Buy ratings and 9 gave Hold calls. With no Sell rating, it has a projected median 1-year price target of $100.03, which leads to an upside potential of more than 18%.

On February 9, Vivek Juneja from J.P. Morgan slightly increased his price target on Wells Fargo & Company (NYSE:WFC) from $99 to $99.50. The analyst maintained a Neutral rating on the shares, with an upside potential in the high-teens.

Juneja revised targets across large-cap banks, noting that the market continues to price in two potential rate cuts, while long-term interest rates are expected to remain relatively firm amid ongoing inflation concerns. He also highlighted that the regulatory backdrop remains supportive and that consolidation activity within the banking sector has picked up and is likely to continue. The analyst believes that banking stocks are showing resilience, supported by sector rotation, stable economic conditions, and steady fundamentals.

Wells Fargo & Company (NYSE:WFC) is engaged in a diverse array of financial services such as banking, mortgages, investments, and commercial finance solutions. It serves consumers, small businesses, and large institutions, offering unique products and services tailored to specific requirements.