Top 5 Financial Stocks To Invest In

In this article, we discuss the top 5 financial stocks to invest in. If you wish to see our detailed analysis of these stocks, go directly to the Top 10 Financial Stocks To Invest In.

5. Wells Fargo & Company (NYSE:WFC)

Number of Hedge Fund Holders: 94

Wells Fargo & Company (NYSE:WFC) is a financial services company that provides a range of products and services, including banking, insurance, mortgage and leasing services, among numerous others. The company rebuilt its mobile banking experience for consumer and small business customers, with an all-new virtual assistant, Fargo, to be added later in 2022.

On October 15, Piper Sandler analyst Scott Siefers raised his price target on Wells Fargo & Company (NYSE:WFC) to $48 from $45, and kept a Neutral rating on the shares.

At the end of the second quarter of 2021, 94 hedge funds in the database of Insider Monkey held stakes worth $7 billion in Wells Fargo & Company (NYSE:WFC), down from 96 in the previous quarter worth $7.4 billion. Out of the hedge funds being tracked by Insider Monkey, Boykin Curry’s Eagle Capital Management is the leading stakeholder in the company, holding over 34.9 million shares worth more than $1.58 billion.

L1 Capital, in its second-quarter 2021 investor letter, mentioned Wells Fargo & Company (NYSE:WFC). Here is what the fund said:

“Wells Fargo (Long +16%) was the strongest contributor to portfolio performance over the quarter. Wells Fargo shares rallied given a better outlook for bad debts driven by improving employment and house price trends. The company had been very undervalued due to excessive fears around likely bad debts due to the pandemic, the continued regulatory “asset cap” (a punishment that was put in place in 2017 for numerous compliance failures) and an inability to commence buybacks. The share price has subsequently recovered strongly in recent months as the company has progressed its turnaround program under the leadership of the well-regarded CEO, Charles Scharf (former CEO of Visa and BNY Mellon). Wells Fargo is now closer to getting the asset cap lifted and has announced a huge cost out program (US$8b+) as well as an $18b buyback program to be completed over the next 12 months. Wells Fargo shares have rallied more than 50% since we initiated the position in late 2020. Given the strong rally, we elected to exit our position and rotate into stocks with larger valuation upside.”