5 Best 52-Week Low Stocks to Buy According to Hedge Funds

4. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 72

On Apr 30, JPMorgan analyst Vivek Juneja reiterated his Hold rating on Wells Fargo & Company (NYSE:WFC) stock. Interestingly, he also lowered his price target on the stock, bringing it down to $86.5 from $91. The stock fell from $82 to $75.6 over the next few days until another analyst, Keith Horowitz of Citi, reiterated his Hold rating on Wells Fargo & Company (NYSE:WFC). The lack of positive triggers means the stock is now back near its June 2025 lows, resulting in almost zero returns over the last 12 months.

The risks causing the lackluster performance were evident on the recent earnings call on April 14. Management feels less-affluent customers will continue to stay under pressure due to rising energy costs. The one-time loss from a fraud-related event also soured sentiment, though the company carried out an intensive review through independent teams to mitigate the risk. Net Interest Margins are expected to continue their downtrend, with senior EVP & CFO Santomassimo warning about margin compression in the ongoing quarter:

And lastly, the impact of lower interest rates. When we provided our full-year guidance last quarter, we anticipated some margin contraction for these reasons, and I would expect additional margin compression next quarter.

Wells Fargo & Company (NYSE:WFC) is a leading financial services company, providing diversified banking services across the Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management segments. The company is based in San Francisco, California, and was founded in March 1852.