10 Best Low Cost Stocks to Buy According to Hedge Funds

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​6. Wells Fargo & Company (NYSE:WFC)

Forward P/E Ratio: 11.07

Number of Hedge Fund Holders: 82

Wells Fargo & Company (NYSE:WFC) is one of the Best Low Cost Stocks to Buy According to Hedge Funds. The Street is bullish on Wells Fargo & Company (NYSE:WFC) as 69% of the 26 analysts covering the stock have a Buy rating. The average 12-month price target on the stock suggests more than 24.45% upside from the current level.

On May 27, Reuters reported that the company’s CEO, Charlie Scharf, offered a strong outlook at the Bernstein Conference. The CEO forecasts mid-teen percentage growth in investment banking and trading revenue for the second quarter, along with low double-digit revenue growth in the bank’s wealth management division. Scharf noted that client activity across investment banking and markets remained strong in the first quarter. This presents opportunities to deepen relationships by deploying more of the bank’s balance sheet.

​The positive outlook follows strong first-quarter results, where investment banking revenue rose 12.7%, and market revenue jumped 19%. The report by Reuters noted that a key tailwind for Wells Fargo is the recent removal of its asset cap by regulators. This lifts years of restrictions and allows the bank to expand more aggressively in deposits and lending.

​​Wells Fargo & Company (NYSE:WFC) is a leading multinational financial services institution founded in 1852 and headquartered in San Francisco, California. The company provides banking, investment, mortgage, treasury, and consumer/commercial finance services, while serving large corporate and institutional clients in more than 35 countries.

While we acknowledge the potential of WFC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WFC and that has 100x upside potential, check out our report about the cheapest AI stock.

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