Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. The company operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management. The Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. Its financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services. The Commercial Banking segment provides financial solutions to private, family owned, and certain public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products, and treasury management services. The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services, such as corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services to corporate, commercial real estate, government, and institutional clients. The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net worth, and ultra-high-net worth clients. It also operates through financial advisors in brokerage and wealth offices, consumer bank branches, independent offices, and digitally through WellsTrade and Intuitive Investor. The company was founded in 1852 and is headquartered in San Francisco, California.

Wells Fargo appears to be a large and profitable bank with stable revenue and a strong capital base, but the market no longer gives it any meaningful discount on the key valuation multiples. P/E and P/S are roughly in line with the industry, which suggests a fair valuation based on earnings and revenue, while P/B and P/FCF are above the median, which usually limits further upside potential. At the same time, EPS, forecast EPS, and net income are noticeably above industry benchmarks, and their year-over-year trend is generally positive, which supports the assessment of business quality. ROE and return on tangible equity look acceptable and are improving, but ROA and ROI are below the median, meaning the efficiency of asset and invested capital use does not look outstanding. Net profit margin remains strong and stable; however, operating margin is below the industry level, indicating certain cost pressures or structural constraints on profitability. Debt load measured by debt/equity is above the industry average, and long-term debt remains substantial, so the credit profile requires caution, even despite the very large amount of assets and liquidity. The balance sheet, in terms of cash on hand and asset growth, looks strong, but the quick ratio is zero and the current ratio is below 1, which is not critical for a bank in the traditional sense, but still highlights the specifics of the balance sheet structure and dependence on stable funding. The dividend yield of around 0.6% is not a strong argument for a re-rating to the upside and is more likely seen as an additional, but not key, support. Overall, the fundamentals are more high-quality than cheap: the business is profitable and large-scale, but it is already close to fair market value. Therefore, a moderately conservative downward adjustment is appropriate to account for the limited room for revaluation and the higher requirements for efficiency and balance-sheet strength.

Wells Fargo & Company

Средний индекс, значительно упал. Быки продолжают терять уверенность.

Medium index, significantly down. Bulls continue to lose confidence.

Средний индекс, незначительно упал. Рынок на стороне быков.

Medium index, slightly down. The market is on the bulls' side.

Слабый индекс, незначительно упал. Приток средств в лонги остался положительным, но снизился.

Weak index, slightly down. The inflow of funds into longs remained positive, but decreased.

Strong profitability and the bank’s scale are combined with a not-so-cheap P/B and moderate efficiency, so the revaluation potential appears limited.

Market pricing now assigns a 70% probability to a Federal Reserve rate hike at next week's meeting, a shift triggered by August's producer price index climbing 0.4% and pushing the annual wholesale inflation rate to 5.4%, according to CME Group's FedWatch gauge. Traders also nudged the odds of a second increase before year-end to nearly 60% (as cited in CNBC).
As an immediate consequence of this, the current spotlight is on banking stocks and the exchange-traded funds (ETFs) that hold them, as investors recalibrate expectations for net interest margins, loan demand and credit conditions.
However, before discussing those ETFs, understanding the broader macroeconomic picture beyond the single rate decision is essential for making informed portfolio allocation decisions.
What a Rate Hike Means for Banks and the Broader Landscape
The sticky inflation dynamics in America are primarily driving the rate hike narrative.
Meanwhile, U.S. crude oil jumped past $100 a barrel amid prolonged Middle East hostilities with Iran. This, in turn, has prompted the European Central Bank to raise rates recently and revise its inflation forecast higher.
Against this backdrop, Fed chairman Kevin Warsh recently emphasized that the personal consumption expenditures (PCE) index, showing core inflation at 3.3% and headline at 3.7% in July, remains the central bank's official yardstick.
Bank of America economist Stephen Juneau estimates core PCE is tracking at a 0.26% monthly rate, which would round up to 0.3% — enough, in his view, to greenlight a hike.
For banks, the transmission mechanism is nuanced. Higher rates typically expand net interest margins as lenders charge more on loans while keeping deposit costs contained. But, they also pressure borrowers, potentially increasing loan delinquencies and slowing mortgage origination.
Prominent names likely to feel these crosscurrents include JPMorgan Chase JPM, Bank of America BAC, Wells Fargo WFC and Citigroup C, each carrying distinct sensitivities to rate movements based on their business mix.
Why Bank ETFs Are in the Spotlight
Banking ETFs provide a focused way to gain exposure to the interest-rate environment while reducing single-stock idiosyncratic risk.
After all, the sector's fortunes are directly tethered to the Fed's policy path: rate hikes can boost profitability through wider spreads, but if inflation remains entrenched and forces the central bank into aggressive tightening, the resulting economic slowdown could impair loan books. Amid this uncertainty — with Friday's consumer price index reading still pending and oil markets volatile — bank ETFs provide diversified exposure to an industry whose earnings are closely tied to the macroeconomic variables currently in flux.
Against this backdrop, for investors seeking to position around next week's decision without picking individual winners and losers may want to consider banking funds.
Bank ETFs in Spotlight
Considering the aforementioned discussion, the spotlight now turns to the following banking ETFs:
Invesco KBW Bank ETF KBWB
This fund, with a market value of $6.85 billion, offers exposure to 26 companies primarily engaged in U.S. banking activities. BAC holds the first spot in this fund, with an 8.81% weightage, while JPM holds the second spot with 8.54% weightage. WFC holds the third spot in this fund, with an 8.34% weightage, while C holds the 10th spot with 3.98% weightage.
KBWB has rallied 14.2% year to date and charges 35 bps in fees. It traded at a good volume of 1.63 million shares in the last trading session.
State Street SPDR S&P Bank ETF KBE
This fund, with AUM of $1.56 billion, offers exposure to 102 Asset Management & Custody Banks, Diversified Banks, Regional Banks, Diversified Financial Services, and Commercial & Residential Mortgage Finance companies. Jackson Financial holds the first spot in this fund, with a 1.23% weightage, while BAC holds the 10th spot with 1.09% weightage.
KBE has gained 12% year to date and charges 35 bps in fees. It traded at a good volume of 1.27 million shares in the last trading session.
State Street SPDR S&P Regional Banking ETF KRE
This fund, with AUM of $4.30 billion, offers exposure to 158 regional banks. Cullen/Frost Bankers, Inc. holds the first spot in this fund, with a 1.48% weightage.
KRE has risen 13.9% year to date and charges 35 bps in fees. It traded at a good volume of 10.24 million shares in the last trading session.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Bank ETFs in Spotlight as Next Week's Fed Rate Hike Odds Hit 70%

U.S. Bancorp USB announced a quarterly cash dividend of 54 cents per share, reflecting a 3.8% increase from the previous payout. The dividend will be paid on Oct. 15, 2026, to shareholders of record as of Sept. 30.
The latest increase follows the successful completion of the Federal Reserve’s 2026 stress test. Previously, USB raised its dividend by 4% to 52 cents per share in September 2025. The latest hike marks the company’s sixth dividend increase in the past five years, representing an annualized growth rate of 2.8% and highlighting its consistent track record of returning capital to shareholders.
Based on yesterday’s closing price of $62.11, USB’s dividend yield stands at 3.4%, above the industry average of 2.6%.
Dividend Yield
Beyond dividends, U.S. Bancorp continues to return capital through share repurchases. In September 2024, the company’s board authorized a $5 billion share repurchase plan. As of June 30, 2026, nearly $3.9 billion remained available under the authorization.
The company’s solid capital position supports its ability to balance these shareholder returns with investments in business growth. Its common equity Tier 1 (CET1) capital ratio stood at 10.8% at the end of the second quarter, above management’s pro forma target of around 10%.
USB is also deploying capital toward businesses that can diversify its revenue base. In June 2026, It completed the acquisition of BTIG, adding institutional equity sales and trading, equity capital markets, electronic trading and M&A advisory capabilities. The transaction strengthens its capital-markets platform and expands its sources of fee-based revenue beyond core banking.
USB’s decent liquidity position further supports its financial flexibility. As of June 30, 2026, cash and due from banks totaled $66.5 billion, while short-term borrowings and long-term debt stood at $37.3 billion and $58.7 billion, respectively. This provides the company with additional capacity to meet funding needs while maintaining its capital allocation priorities.
Looking ahead, management expects to increase share repurchases and gradually move toward a 70%-75% payout ratio. The pace of buybacks will depend on capital needs, loan growth and strategic opportunities, allowing USB to balance shareholder distributions with investments in business growth.
Overall, U.S. Bancorp’s dividend growth, share repurchases and strong capital position reflect a balanced approach to capital allocation. Meanwhile, the BTIG acquisition adds to its growth prospects, supporting the company’s ability to invest in its business while continuing to return capital to shareholders.
How Do Other Banks Compare in Terms of Dividend Payouts?
Similar to USB, other banks, such as Citigroup C and Wells Fargo WFC, also announced dividend hikes after successfully completing the Fed’s 2026 stress test.
Citigroup raised its quarterly common stock dividend by 12% to 67 cents per share and launched a $30-billion share repurchase program. As of June 30, 2026, Citigroup had $26 billion remaining under its share repurchase authorization. Its CET1 ratio stood at 12.8%, about 120 basis points above the regulatory requirement, supporting its ability to continue returning capital to shareholders.
Moreover, Wells Fargo increased its third-quarter 2026 common stock dividend by 11% to 50 cents per share. In April 2025, its board authorized an additional $40 billion share repurchase program, with approximately $22.7 billion remaining under the authorization as of June 30, 2026. Further, Wells Fargo’s CET1 ratio stood at 10.3%, within management’s target range and well above regulatory requirements, supporting its capacity to return capital to shareholders.
USB’s Price Performance and Zacks Rank
Over the past six months, shares of US Bancorp have rallied 18.9% compared with the industry’s growth of 23.9%.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
U.S. Bancorp (USB) : Free Stock Analysis Report

U.S. Bancorp Lifts Quarterly Dividend by 3.8%: Can It Keep Up the Pace?

Wells Fargo (WFC) ended the recent trading session at $72.05, demonstrating a -0.78% swing from the preceding day's closing price. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the biggest U.S. mortgage lender had gained 0.08% over the past month, lagging the Finance sector's gain of 0.93% and the S&P 500's gain of 1.09% in that time.
The upcoming earnings release of Wells Fargo will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.32, reflecting a 2.33% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.43 billion, down 0.25% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.27 per share and revenue of $82.65 billion, which would represent changes of -2.95% and +0.06%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wells Fargo. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.77% rise in the Zacks Consensus EPS estimate. Wells Fargo is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Wells Fargo is holding a Forward P/E ratio of 13.79. This signifies a discount in comparison to the average Forward P/E of 17.4 for its industry.
We can also see that WFC currently has a PEG ratio of 1.56. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.48.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Zacks Naming Top 10 Stocks for 2025
Want to be tipped off early to our 10 top picks for the entirety of 2025?
History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report
To read this article on Zacks.com click here.

Wells Fargo (WFC) Registers a Bigger Fall Than the Market: Important Facts to Note

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Financials ETF (Symbol: VFH) where we have detected an approximate $279.6 million dollar outflow -- that's a 2.0% decrease week over week (from 97,846,953 to 95,878,424). Among the largest underlying components of VFH, in trading today JPMorgan Chase & Co (Symbol: JPM) is off about 1.3%, Wells Fargo & Co (Symbol: WFC) is down about 1.5%, and Citigroup Inc (Symbol: C) is lower by about 0.8%. For a complete list of holdings, visit the VFH Holdings page » The chart below shows the one year price performance of VFH, versus its 200 day moving average:
Looking at the chart above, VFH's low point in its 52 week range is $116.67 per share, with $143.20 as the 52 week high point — that compares with a last trade of $140.67. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further VFH Research:

Noteworthy ETF Outflows: VFH, JPM, WFC, C

Key Points
Its fourth-quarter results crushed analyst estimates.
Analysts were quick to raise their price targets on the stock in the wake of that earnigs report.
Cloud and enterprise software company Nutanix (NASDAQ: NTNX) probably doesn't want the summer to end, given how well its stock did in August. Boosted by the estimates-trouncing fiscal fourth-quarter and full-year report it posted toward the end of the month and a subsequent wave of analyst price targets, its shares exited August with a more than 16% gain.
A fabulous final frame
The month didn't exactly start on a high note for Nutanix. Four days into it, the company divulged in a regulatory filing that it aimed to reduce its workforce by roughly 5%. Stating that this decision was reached after a review of its business structure, Nutanix said the move will cost it roughly $33 million to $43 million. The reductions should be complete by the end of October.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The company had better news to impart with that earnings report. The final frame of its 2026 fiscal year saw it book just over $757 million in revenue, up 16% year over year. Annual recurring revenue at the end of the quarter and year was also 16% higher, at $2.55 billion.
Net income not under generally accepted accounting principles (non-GAAP, or adjusted) was more than $175 million, or $0.60 per diluted share. That was a robust 61% higher than the fourth quarter of fiscal 2025 result.
It was also far above the consensus analyst estimate of $0.49. The same could be said for the company's revenue that quarter, which well exceeded the average pundit expectation of slightly more than $738 million.
In its earnings release, Nutanix quoted CEO Rajiv Ramaswami as saying the quarter "was a strong finish to fiscal 2026, a year in which we delivered solid top and bottom line performance and added over 3,000 new customers."
Management clearly doesn't believe that will be the last time the company will outperform.
It proffered strong guidance for both revenue and free cash flow (FCF) for the entirety of fiscal 2027. The top-line is forecast at $3.18 billion to $3.23 billion, while the outlook for FCF is $850 million to $950 million.
A bunch of bulls
For obvious reasons, investors liked what they heard about the quarter and reacted by driving Nutanix's stock higher in the days that followed. Some were probably influenced by the series of analyst price target raises immediately following earnings. The raisers included pundits from top financial companies Bank of America, Morgan Stanley, and Wells Fargo.
I'd be inclined to agree with those prognosticators and the bullish investors buying in at the end of the month. Nutanix continues to have a compelling business proposition with its "hyperconverged infrastructure," which bundles advanced compute, networking, and storage on a single platform. I think this stock has quite a high ceiling these days.
Should you buy stock in Nutanix right now?
Before you buy stock in Nutanix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nutanix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Wells Fargo is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Nutanix. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why Nutanix Stock Ascended in August

Key Points
Its performance during the period was impressive, but there were other, more negative, news items.
One was a potentially dilutive new share issue.
Innodata's (NASDAQ: INOD) August was marked by an estimates-beating second quarter, but you wouldn't know that from how its stock performed that month. It fell by 10% due to other developments that investors didn't view as particularly positive.
An impressive second frame
Let's shine a light on the good news first. On Aug. 6, Innodata took the wraps off that quarter's figures, which were headed by revenue of $92.1 million for the period -- up nearly 58% year over year. That total set a new quarterly record for the company, as did other line items like gross profit not under generally accepted accounting principles (non-GAAP, or adjusted).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Innodata didn't hesitate to note that this was the 12th consecutive quarter in which it posted year-over-year revenue growth.
In a similarly encouraging development, the tech company's GAAP net income almost doubled, to $14.4 million, or $0.41 per share.
Both headline results were more than sufficient to beat the consensus analyst estimates. $86.3 million was the average pundit projection for revenue, and those professionals collectively anticipated only $0.22 per share in GAAP net income.
Innodata is doing well on the sustained, feverish build-out of artificial intelligence (AI) compute. It has carved out quite a strong niche as a business that provides data sets and evaluation services in the training of AI models.
New leader and capital incoming
In the earnings release, several paragraphs down from Innodata's evaluation of the quarter, it revealed that it had named a new CEO. The incoming leader is the company's current chief revenue officer, Rahul Singhal, who is to take the reins on Sept. 30. He replaces longtime CEO Jack Abuhoff, who will add the "executive" modifier to his chairman role on the board of directors.
Although Innodata described the change as being "planned," it was news to the general public.
Another generally unexpected development was a capital raise. Innodata disclosed in a regulatory filing, also on Aug. 6, that it aims to sell up to $300 million of its common stock in an at-the-market (ATM) public offering. It's doing so in collaboration with a syndicate of sales agents that includes Goldman Sachs and Wells Fargo.
Innodata said it aims to use the proceeds of the issue "for working capital and general corporate purposes." It didn't add much detail to this.
If there are two things investors don't like in their companies, they're CEO changes that seem to come out of left field and potentially dilutive equity offerings with murky purposes. Innodata announced both on the same day, setting a generally bearish tone for the rest of the month in the absence of other major stock-moving news items.
While both are causes for concern, with Innodata I'd be more worried that its business -- thriving though it has been -- doesn't have a moat that's dauntingly high. There's also the company's client concentration; it currently derives 37% of its total revenue from a single, unnamed customer, and a second anonymous one is now responsible for 34%.
While the former's percentage is down notably from the first quarter's 56%, that's still a high degree of dependency.
This feels to me like a boom-or-bust stock, and right now I think the company is too vulnerable for comfort. I'd pass on owning its equity.
Should you buy stock in Innodata right now?
Before you buy stock in Innodata, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Innodata wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 5, 2026.
Wells Fargo is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why Innodata Stock Tumbled by 10% Last Month

Northern Trust Corporation’s NTRS net interest income (NII) maintained solid momentum in the second quarter of 2026, aided by margin expansion and favorable balance-sheet trends.
On a fully taxable equivalent (FTE) basis, NII increased 11% year over year. FTE net interest margin (NIM) expanded to 1.81% from 1.69% in the year-ago quarter. On a GAAP basis, NII was $675.5 million, while NIM was 1.79%.
Balance-sheet trends also remained supportive. Average earning assets totaled approximately $151 billion in the second quarter, up 4% year over year, although down 2% sequentially. Within the earning-asset mix, average debt securities increased 17% year over year to $61 billion, while average loans rose 1% to $42 billion. Other earning assets increased 15% to $10 billion. These gains were partly offset by a 12% decline in Federal Reserve and other central bank deposits to $38 billion.
Deposit trends were also relatively healthy across Northern Trust’s major businesses. Wealth Management average deposits were $27 billion, up 6% year over year and 1% sequentially. Asset Servicing average deposits totaled $101 billion, increasing 6% year over year despite a 1% sequential decline.
NII growth has been robust on a year-to-date basis as well. Northern Trust’s NII growth improved from 6% in 2023 to 8% in 2024 and 10% in 2025, before reaching 13% in the first six months of 2026.
Will NTRS’ NII Momentum Continue in 2026?
Northern Trust’s improving margin and earning-asset mix indicate that NII momentum could continue through the remainder of 2026. The increase in debt securities and modest loan growth should remain supportive, while the reduction in lower-yielding central bank deposits suggests a more productive deployment of the balance sheet.
Moreover, the company entered the second half of the year from a position of considerable financial strength. Excluding notable items, first-half 2026 revenues increased 13% year over year, while expenses rose just 5%. Earnings per share jumped 40%, resulting in more than 700 basis points of positive operating leverage. Management also highlighted double-digit NII growth as one of the key achievements of its strategy during the first half.
Nevertheless, the trajectory of interest rates, deposit pricing and balance-sheet growth will remain important determinants of NII performance.
Overall, Northern Trust’s 11% year-over-year NII growth, expanding NIM and 13% first-half NII increase provide a solid foundation for continued momentum in 2026.
How Other Banks Expect Their NII to Fare
Wells Fargo WFC and Citigroup C also anticipate their NII to grow in 2026.
Wells Fargo expects NII to be $50 billion. NII, excluding Markets, is projected to be $48 billion, driven by balance-sheet growth, a favorable loan and deposit mix and continued fixed-asset repricing, partially offset by the impacts of expected rate cuts.
Citigroup expects NII (excluding Markets) to increase 5-6% on a year-over-year basis in 2026, supported by stabilizing deposit costs and disciplined balance-sheet management. The outlook reflects the bank’s efforts to benefit from a more favorable rate and funding environment while continuing to reshape its business toward higher-quality growth.
NTRS Price Performance & Zacks Rank
Shares of Northern Trust have jumped 47.3% over the past year compared with the industry’s growth of 32.6%.
Currently, NTRS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Northern Trust's NII Rises 11% in Q2: Can Momentum Persist in 2026?

Investors in Wells Fargo & Co (Symbol: WFC) saw new options begin trading today, for the October 23rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the WFC options chain for the new October 23rd contracts and identified one put and one call contract of particular interest.
The put contract at the $88.00 strike price has a current bid of $1.87. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $88.00, but will also collect the premium, putting the cost basis of the shares at $86.13 (before broker commissions). To an investor already interested in purchasing shares of WFC, that could represent an attractive alternative to paying $89.49/share today.
Because the $88.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 59%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.12% return on the cash commitment, or 15.51% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Wells Fargo & Co, and highlighting in green where the $88.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $90.00 strike price has a current bid of $1.93. If an investor was to purchase shares of WFC stock at the current price level of $89.49/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $90.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.73% if the stock gets called away at the October 23rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if WFC shares really soar, which is why looking at the trailing twelve month trading history for Wells Fargo & Co, as well as studying the business fundamentals becomes important. Below is a chart showing WFC's trailing twelve month trading history, with the $90.00 strike highlighted in red:
Considering the fact that the $90.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 49%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.16% boost of extra return to the investor, or 15.74% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 31%, while the implied volatility in the call contract example is 30%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $89.49) to be 26%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Further WFC Research:

Interesting WFC Put And Call Options For October 23rd

The NASDAQ 100 Pre-Market Indicator is down -374.62 to 29,082.35. The total Pre-Market volume is currently 209,409,739 shares traded.
The following are the most active stocks for the pre-market session:
NIO Inc. (NIO) is -0.0707 at $4.16, with 13,029,491 shares traded., following a 52-week high recorded in prior regular session.
Rezolve AI PLC (RZLV) is -0.1906 at $2.70, with 8,551,382 shares traded. As reported by Zacks, the current mean recommendation for RZLV is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is -2.43 at $69.49, with 5,107,641 shares traded. This represents a 86.2% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +1.3 at $39.81, with 3,777,135 shares traded. This represents a 11.45% increase from its 52 Week Low.
Wells Fargo & Company (WFC) is +0.02 at $86.41, with 3,114,600 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
NVIDIA Corporation (NVDA) is -3.3027 at $217.48, with 2,575,934 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2026. The consensus EPS forecast is $2.47. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Nokia Corporation (NOK) is -0.1604 at $9.98, with 2,461,521 shares traded. As reported by Zacks, the current mean recommendation for NOK is in the "buy range".
iShares Bitcoin Trust ETF (IBIT) is -0.53 at $44.14, with 2,338,610 shares traded. This represents a 34.41% increase from its 52 Week Low.
Direxion Daily TSLA Bull 2X ETF (TSLL) is -0.2601 at $9.71, with 2,325,372 shares traded. This represents a 45.03% increase from its 52 Week Low.
Pfizer, Inc. (PFE) is +0.15 at $28.61, with 1,870,803 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2026. The consensus EPS forecast is $0.74. PFE's current last sale is 102.18% of the target price of $28.
iShares 0-3 Month Treasury Bond ETF (SGOV) is +0.0271 at $100.41, with 1,238,052 shares traded. This represents a .14% increase from its 52 Week Low.
BitMine Immersion Technologies, Inc. (BMNR) is -0.66 at $24.66, with 1,076,934 shares traded. As reported by Zacks, the current mean recommendation for BMNR is in the "buy range".

Pre-Market Most Active for Sep 1, 2026 : NIO, RZLV, TQQQ, SQQQ, WFC, NVDA, NOK, IBIT, TSLL, PFE, SGOV, BMNR

In the latest trading session, Wells Fargo (WFC) closed at $86.68, marking a +2.01% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.25%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw a decrease of 0.52%.
Heading into today, shares of the bank had lost 0.54% over the past month, lagging the Finance sector's gain of 1.34% and the S&P 500's gain of 4.34%.
Market participants will be closely following the financial results of Wells Fargo in its upcoming release. It is anticipated that the company will report an EPS of $1.84, marking a 6.36% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $22.22 billion, indicating a 3.66% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.25 per share and revenue of $88.65 billion, which would represent changes of +15.45% and +5.91%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wells Fargo. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. As of now, Wells Fargo holds a Zacks Rank of #3 (Hold).
In terms of valuation, Wells Fargo is presently being traded at a Forward P/E ratio of 11.72. This indicates a discount in contrast to its industry's Forward P/E of 14.75.
Investors should also note that WFC has a PEG ratio of 0.93 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 1.02.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 32, placing it within the top 14% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).