Jim Cramer’s 5 Favorite Energy and Bank Stock Picks

2. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 77

Cramer thinks Wells Fargo & Company (NYSE:WFC) “is about to take off”. Cramer disclosed that his charitable trust has a stake in the company. Cramer also noted that Wells Fargo & Company (NYSE:WFC) “is slowly but surely moving up” and “it is ridiculously cheap” even at current levels. As of February 3, Wells Fargo & Company (NYSE:WFC) is trading at a PE multiple of 15x and is offering a forward dividend yield of 2.54%. Wells Fargo & Company (NYSE:WFC) is one of Jim Cramer’s favorite bank stock picks.

On January 17, Citi analyst Keith Horowitz raised his price target on Wells Fargo & Company (NYSE:WFC) to $52 from $48 and maintained a Buy rating on the shares.

At the close of the third quarter of 2022, 77 hedge funds held stakes in Wells Fargo & Company (NYSE:WFC). The total value of these stakes amounted to $4.95 billion. As of December 31, Pzena Investment Management is the dominant shareholder in the company with a stake worth $731.2 million.

Here is what Oakmark Funds had to say about Wells Fargo & Company (NYSE:WFC) in its third-quarter 2022 investor letter:

“Wells Fargo & Company (NYSE:WFC) has been a long-time holding in the Oakmark Fund. Despite the positives of higher interest rates and the company making good progress on reducing expenses and regulatory consent orders, Wells Fargo shares have fallen one-third from their highs earlier this year to roughly 6.5x our estimate of normalized earnings power, and the stock ended the quarter at ~1x next year’s tangible book value. We find this is far too cheap for a strong banking franchise capable of tangible returns in the low-to-mid teens across business cycles.”