Jim Cramer Talked About These 8 Stocks & The Quantum Computing Dip

5. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders In Q2 2025: 75

After the Federal Reserve lifted its asset cap restrictions on Wells Fargo & Company (NYSE:WFC) in June, the stock has shaped up to become one of Cramer’s favorites in the sector. He explained why he’s optimistic about the company in detail:

“The bank that is producing the best earnings this morning is Wells Fargo. And the reason why that is because Charlie Scharf laid out a vision which just says, our stock is cheaper than we thought. He actually bumped his, what I thought he was going to buy back aggressively. He talked about having 30 billion more cash than he needs now that the cap is gone, and then reinventing the bank. No longer just doing nothing but mortgages but now doing a lot of exciting things, including M&A, a lot of corporate stuff that they weren’t doing before because they weren’t run by Charlie Scharf.

“So David, contrast here. Charlie had all that capital locked up because of the cap put on by the government. Now that’s freed.

“Here’s the deal. Charlie was constrained, the bank was constrained because there was a cap that was put on by the Federal Reserve right before Janet Yellen left. And it really kept it so they had more and more capital building. They weren’t able to distribute like how they would like to. That cap’s now gone. And what Charlie has done is create a much greater, earnings regime. But more importantly, from the point of view of the stock, Charlie had been somehow more lukewarm about the idea of buying a lot of stock here. He accelerated the buyback because he realized he had 30 billion dollars in excess capital, David. This is such a different Wells from the John Stumpf days, 30 billion dollars in excess capital, it can be deployed anywhere he wants it. So Charlie’s got great flexibility. The new model’s good. A lot of investment banking, a lot of credit cards, to Charlie’s credit, he’s made this,  it turned out to be a sleeping mortgage bank into something we’re going to start thinking of as one of the majors in terms of, when it comes to corporate finance. You know David they were never a corporate finance power. Some of that is the people you know he brought over. Because they didn’t get, you know Jamie didn’t retire, there’s a lot of people who thought they might get that job.”