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 mature bank with stable earnings, but without an obvious cushion for aggressive revaluation. A P/E at the industry median and a P/S around the median suggest that the market is already pricing in current profitability and revenue fairly appropriately. At the same time, a P/B ratio about one-fifth above the median, and an extremely high P/FCF, limit the potential for further multiple expansion. Its strengths remain ROE and return on tangible equity: both metrics are at an acceptable level or slightly better than those of peers, while also gradually improving over the years. On the other hand, ROA and ROI are below the industry median, indicating suboptimal efficiency in the use of assets and capital. Net profit margin and operating margin are also below industry benchmarks, although their year-over-year trend is more stable than deteriorating. Dividend yield is moderate and edging higher, which supports the stock’s appeal for an income portfolio, but it is not a strong re-rating driver. The bank’s balance sheet is large and liquid in absolute terms, but the quick ratio is formally weak and the current ratio is below one, which is not critical for the banking sector but still warrants caution. Debt load, as measured by debt/equity and long-term debt, is above industry benchmarks, so financial leverage remains a risk factor. Positively, revenue, net income, operating income, and assets are generally growing, while equity remains stable, confirming the business’s resilience. Overall, the fundamentals support the current valuation more than they justify a meaningful increase in the target price. Therefore, the adjustment should be small and conservative, with a slight downward bias due to the expensive P/B and weak efficiency in ROA/ROI.

Wells Fargo & Company

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Слабый индекс, незначительно вырос

WFC demonstrates stable profitability and asset growth, but its valuation on a P/B and P/FCF basis looks stretched, and asset efficiency is below the industry average.

Key Points
Prediction market bettors are assigning a high probability of Elon Musk's two trillion-dollar companies merging before May 1, 2027.
Elon Musk added fuel to merger rumors with his comments during Tesla's quarterly conference call.
A potential merger between SpaceX and Tesla would lack clear cost synergies, drag on Tesla's profitable operations, and expose many of Musk's unfulfilled promises.
Wall Street history was made seven weeks ago, with Elon Musk's Space Exploration Technologies (SpaceX) (NASDAQ: SPCX) setting a new bar for initial public offerings. The $85.7 billion SpaceX raised, including the underwriters' overallotment, practically tripled the previous recordholder, Saudi Aramco.
But history isn't done being made, according to the bettors at prediction market Kalshi. As of July 25, there was 74% probability that SpaceX and Musk's other trillion-dollar company, Tesla (NASDAQ: TSLA), would merge before May 1, 2027.
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While combining these two companies would be nostalgic, two negatives won't make a positive on Wall Street.
Could SpaceX and Tesla merge?
The recent surge in merger speculation between Elon Musk's trillion-dollar companies traces back to Tesla's latest quarterly conference call. When asked by Wells Fargo analyst Colin Langan if SpaceX and Tesla would one day merge, he didn't say no.
Although Musk didn't offer any guarantees of a merger, either, he did note, "as you can tell from the many collaborations on so many fronts with SpaceX, there's more and more overlap, especially with Terafab, that's really going to be a gigantic project."
BREAKING: Odds Tesla and SpaceX merge within the next year skyrocket to 74% -- a record high. pic.twitter.com/hQNQdOYmjf
-- Kalshi (@Kalshi) July 25, 2026
Terafab is a joint-venture semiconductor manufacturing project between Tesla, SpaceX, and artificial intelligence (AI) start-up xAI. It represents arguably the biggest connection between Tesla and SpaceX, but far from the only one. For instance, SpaceX's satellite-based broadband service, Starlink, will be integrated directly into Tesla's Cybercab.
From an investment standpoint, perhaps the biggest attraction of a SpaceX-Tesla merger is that it would bring everything under one roof for Elon Musk. Tesla's stock has wavered amid concerns that Musk is distracted by other projects (and companies).
Given the otherworldly gains Musk has overseen at Tesla since it went public in June 2010, combining these two businesses could tug on investors' heartstrings -- at least initially.
A negative times a negative only equals a positive in mathematics (not on Wall Street)
While a merger of equals run by the same boss would seem to make some sense on paper, there are several reasons to believe it would be a logistical nightmare for investors.
For example, even though Musk pointed to "more and more overlap" between his public companies during Tesla's latest conference call, there isn't much in the way of cost synergies. There's a big difference between Tesla being a customer of SpaceX (or vice versa) and combining two aesthetically different businesses and expecting them to be more cost-efficient.
SpaceX in IPO filing: "We believe we have identified the largest actionable total addressable market in human history. We estimate that our quantifiable TAM is $28.5 trillion, consisting of $370 billion in Space from space-enabled solutions; $1.6 trillion in Connectivity across... https://t.co/CBTpfJECik pic.twitter.com/yh54mKFlQE
-- Sawyer Merritt (@SawyerMerritt) May 20, 2026
Additionally, SpaceX is quite a ways away from proving it's a sustainable business. Despite SpaceX claiming it has a $28.5 trillion addressable market, the business (outside of Starlink) isn't profitable. It's highly capital-intensive and prone to production delays. Tying that business to a recurringly profitable Tesla would be a drag on the latter.
However, Tesla's profit isn't all it's cracked up to be, either. A significant chunk of Tesla's pre-tax income has been driven by interest income and automotive regulatory credits (i.e., non-sustainable sources of income).
Combining SpaceX and Tesla would be messy and expose just how many of Elon Musk's unfulfilled promises have been baked into the valuations of both companies.
Should you buy stock in Space Exploration Technologies right now?
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Wells Fargo is an advertising partner of Motley Fool Money. Sean Williams has positions in Wells Fargo. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

There's a 74% Chance SpaceX and Tesla Will Merge by May 2027, According to Kalshi -- but 2 Negatives Don't Make a Positive on Wall Street

Key Points
The beverage titan posted a second quarter marked by strong growth figures.
On Wednesday, more than a few analysts raised their price targets on the shares.
One day after Coca-Cola (NYSE: KO) stock hit an all-time high price, the storied beverage conglomerate repeated the accomplishment on Wednesday. The company's shares inched higher on the back of several bullish new post-earnings analyst takes.
So refreshing
Coca-Cola reported a strong second quarter on Tuesday and, as so often happens following a blowout earnings release, a score of analysts raised their price targets on the stock.
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One of the more bullish raisers was Dara Mohsenian of white-shoe investment bank Morgan Stanley. He not only cranked his fair value assessment to $100 per share from $89, he also reiterated (and emphasized) that Coca-Cola was a top pick at his company. Almost needless to say, he continued to rate the stock as an overweight (read: buy).
According to reports, he cited several impressive growth figures for the quarter. These included the company's unit case growth of 5% year over year (trouncing analyst projections of slightly more than 2%). Mohsenian added that growth in many areas would have been impressive even without the boost of the World Cup and the hotter-than-usual weather.
Other researchers lifting their price targets for the beverage sector king included analysts from such influential companies as JPMorgan Chase's J.P. Morgan and Wells Fargo.
The best in the business
To me, Coca-Cola's second quarter wasn't a one-off or fluke because of the above-mentioned factors.
Many advertisers were competing for attention during the World Cup, and American consumers in particular have plenty of choices when it comes to quenching their heat-induced thirst. The company's advertising and marketing efforts clearly struck a chord, illustrating one of its great and almost unbeatable strengths.
Coca-Cola is firing on nearly all cylinders these days, with a management team that knows the great value of the brand it's steering, and how to extract value from it. Plus, the stock is one of the best income plays on the market with its generous dividend. I've been a longtime Coke bull, and I can't imagine changing my stance, especially given its recent performance.
Should you buy stock in Coca-Cola right now?
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JPMorgan Chase is an advertising partner of Motley Fool Money. 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 JPMorgan Chase. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Coca-Cola Stock Was so Fizzy Today

The NASDAQ 100 After Hours Indicator is up 30.88 to 27,794.02. The total After hours volume is currently 165,496,136 shares traded.
The following are the most active stocks for the after hours session:
NVIDIA Corporation (NVDA) is +0.24 at $197.25, with 7,590,624 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2026. The consensus EPS forecast is $2.01. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Applied Digital Corporation (APLD) is +0.08 at $26.70, with 7,444,102 shares traded. As reported by Zacks, the current mean recommendation for APLD is in the "buy range".
IREN Limited (IREN) is +0.14 at $34.07, with 5,947,285 shares traded. As reported by Zacks, the current mean recommendation for IREN is in the "buy range".
Apple Inc. (AAPL) is +0.03 at $340.11, with 5,389,404 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 $2.95. AAPL is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.88 per share, which represents a 157 percent increase over the EPS one Year Ago
Intel Corporation (INTC) is +0.48 at $86.78, with 4,759,620 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 $0.19. INTC's current last sale is 75.46% of the target price of $115.
Amazon.com, Inc. (AMZN) is -0.16 at $230.70, with 4,726,427 shares traded.AMZN is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.81 per share, which represents a 168 percent increase over the EPS one Year Ago
Kinder Morgan, Inc. (KMI) is unchanged at $31.61, with 4,715,234 shares traded. KMI's current last sale is 87.81% of the target price of $36.
Ford Motor Company (F) is +1.2 at $16.16, with 4,107,636 shares traded. Smarter Analyst Reports: Ford Plans Reorganization into EV and ICE Business Units – Report
Wells Fargo & Company (WFC) is -0.0609 at $86.81, with 2,822,878 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $1.84. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Carnival Corporation Ltd. (CCL) is +0.04 at $28.27, with 2,682,654 shares traded. As reported by Zacks, the current mean recommendation for CCL is in the "buy range".
AT&T Inc. (T) is +0.0055 at $24.67, with 2,443,665 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $0.62. As reported by Zacks, the current mean recommendation for T is in the "buy range".
Bloom Energy Corporation (BE) is +22.01 at $188.85, with 2,299,289 shares traded. BE's current last sale is 66.26% of the target price of $285.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Hours Most Active for Jul 28, 2026 : NVDA, APLD, IREN, AAPL, INTC, AMZN, KMI, F, WFC, CCL, T, BE

In trading on Tuesday, shares of Wells Fargo & Co's 4.25% Dep Shares Non-Cumul Perp Cls A Preferred Stock Series DD (Symbol: WFC.PRD) were yielding above the 6.5% mark based on its quarterly dividend (annualized to $1.0625), with shares changing hands as low as $16.34 on the day. This compares to an average yield of 6.77% in the "Financial" preferred stock category, according to Preferred Stock Channel. As of last close, WFC.PRD was trading at a 34.40% discount to its liquidation preference amount, versus the average discount of 12.84% in the "Financial" category. Investors should keep in mind that the shares are not cumulative, meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend.
The chart below shows the one year performance of WFC.PRD shares, versus WFC:
Below is a dividend history chart for WFC.PRD, showing historical dividend payments on Wells Fargo & Co's 4.25% Dep Shares Non-Cumul Perp Cls A Preferred Stock Series DD:
Further WFC.PRD Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wells Fargo' Preferred Stock Series DD Yield Pushes Past 6.5%

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Financials ETF (Symbol: IYF) where we have detected an approximate $254.7 million dollar inflow -- that's a 5.8% increase week over week in outstanding units (from 32,750,000 to 34,650,000). Among the largest underlying components of IYF, in trading today Wells Fargo & Co (Symbol: WFC) is up about 1.2%, The Charles Schwab Corporation (Symbol: SCHW) is up about 1.8%, and Standard and Poors Global Inc (Symbol: SPGI) is up by about 2.3%. For a complete list of holdings, visit the IYF Holdings page » The chart below shows the one year price performance of IYF, versus its 200 day moving average:
Looking at the chart above, IYF's low point in its 52 week range is $113.62 per share, with $136 as the 52 week high point — that compares with a last trade of $135.37. 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 IYF Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Inflows: IYF, WFC, SCHW, SPGI

Citigroup, Inc. C delivered an impressive second-quarter performance, easily surpassing the Zacks Consensus Estimate, with strong growth in revenues and earnings. Other major banks, including Bank of America BAC and Wells Fargo WFC, also came out with solid quarterly results.
Citigroup generated its highest quarterly revenues of $24.76 billion in a decade, which jumped 14% year over year and topped Zacks Consensus Estimates by more than 4%. More impressively, second-quarter adjusted net income surged 45% on a year over year basis to $5.8 billion. This translated into adjusted earnings per share of $3.15, which crushed the Zacks Consensus Estimate by nearly 16% and climbed more than 60% from the prior year quarter.
Growth was broad-based across the franchise, with investment banking, markets, wealth management, services and consumer banking all contributing to the strong quarter. Citigroup also generated positive operating leverage as revenue growth significantly outpaced expense growth, highlighting that CEO Jane Fraser's multi-year restructuring efforts continue to improve the firm's operating efficiency.
C shares are also experiencing significant momentum, rising 14.4% year to date and outperforming the industry’s growth of 11.6%. Bank of America’s shares have risen 14% while Wells Fargo shares declined 6.4% over the same period.
Price Performance
Image Source: Zacks Investment Research
Most important for investors, significant progress in the ongoing overhaul plan and impressive earnings beat over the past four trailing quarters have prompted analysts to raise their earnings outlook, leading to favorable estimate revisions. Notably, for 2026 and 2027, earnings estimates rose 3.1% and 2.5%, respectively, in the last 30 days, respectively.
Estimate Revision Trend
Image Source: Zacks Investment Research
Citigroup is expected to post 40.8% year-over-year earnings growth this year, followed by a 15% rise in 2027.
Following the blockbuster second-quarter report, a sharp run-up in share price and upward estimate trend, does Citigroup’s stock still offers meaningful upside or if much of the optimism is already reflected in the stock price? To answer this, let us delve deeper and assess C’s investment potential in more detail.
Citigroup’s Performance Catalysts
Strategic Transformation: Citigroup has moved closer to completing its multi-year exit from non-core international consumer banking. The sale of the Polish consumer business in June 2026 marked the final international consumer divestiture apart from remaining wind-downs of Banamex. The company also sold an additional 22.6% stake in Banamex in the second quarter after selling 25% in late 2025. The remaining Banamex deconsolidation and IPO are planned for early 2027, with management expecting the transaction to free up $5 billion in capital.
These transactions follow the completed Russia exit and divestures of consumer franchises across Asia and EMEA. The simpler structure reduces operational complexity, releases capital and allows management to direct resources toward Services, Markets, Banking, Wealth and U.S. Consumer Cards. As the remaining divestitures and wind-downs conclude, lower stranded costs and a more focused allocation of capital should support the path toward higher sustainable returns.
Backed by these initiatives, Citigroup expects revenues, excluding Legacy Franchises and reconciling items, to see a mid-single-digit CAGR from 2025 through 2028. It also aims to achieve a return on tangible common equity (ROTCE) of 10-11% by 2026. C expects to reach 11-13% RoTCE, excluding notable items in 2027 and 2028, and then move toward 14-15% RoTCE over the medium term. This outlook reflects management’s belief that C’s business model is becoming simpler, more efficient and better able to translate revenue growth into shareholder value.
Cost-Optimization Initiatives: The company continues to execute its multi-year cost optimization strategy, centered on workforce rationalization, process simplification, automation and technology investments aimed at enhancing long-term productivity and profitability.
As part of its restructuring program, the company remains on track to eliminate 20,000 positions by the end of 2026. Its total headcount declined to 219,000 as of June 30, 2026, from 230,000 a year earlier. In the first half of 2026, the bank incurred more than $800 million in severance costs, reflecting upfront investments to achieve sustainable operating efficiencies.
Beyond workforce optimization, management is driving efficiency through process simplification, platform consolidation and increased automation, reducing manual touchpoints across operations. At the same time, the company continues to invest in technology and artificial intelligence to strengthen operational resilience, improve productivity and support future revenue growth. To accelerate these initiatives, Citigroup plans to invest an incremental $5 billion between 2026 and 2028, with spending focused on technology modernization, marketing, front-office talent and branch renovations.
Management expects workforce optimization, organizational simplification and technology investments to generate $2-$2.5 billion of annualized cost savings by 2026. The company continues to target a full-year efficiency ratio of 60%. While a portion of these savings will enhance profitability, management intends to reinvest part of the benefits into technology, talent and strategic growth initiatives to support sustainable long-term returns.
Interest Rate Outlook Remains Supportive: NII has been a key contributor to Citigroup’s earnings power and management expects growth to continue amid a shifting rate environment. NII witnessed a three-year CAGR of 6.2% (ended 2025). The uptrend continued in the first half of 2026. Also, the company has been witnessing solid growth in loans and deposit balances.
Though the Federal Reserve is expected to hike the interest rates later this year, Citigroup’s NII will continue to grow, given stabilizing funding/deposit costs and solid loan demand. Management expects NII, excluding Markets, to increase 5-6% in 2026, supported by loan growth and stabilizing funding dynamics.
Liquidity Strength Powers Shareholder Payouts: C enjoys a strong liquidity position. As of June 30, 2026, Citigroup’s cash and due from banks and total investments aggregated to $449.4 billion, lower than its total debt (short-term and long-term borrowing) of $373.3 billion.
Post-clearing the 2026 stress test, the company hiked its dividend 11.7% to 67 cents per share. In the past five years, it has raised its dividends four times. By comparison, Wells Fargo and Bank of America have raised their dividends six and five times, respectively, during the past five years.
Coming back to Citigroup, it maintains a modest payout ratio of 23%, indicating adequate scope to sustain distributions. The company’s annual dividend yield of 1.82% is higher than the industry average, providing investors with a steady income stream while management continues to execute its turnaround strategy.
Citigroup has also remained active in repurchasing shares. The board authorized a $30-billion buyback commitment in June 2026, with no expiry date.
Including dividends, C’s total return over the past three years has been nearly 208% compared with the industry’s average of 136.9%. Thus, the combination of potential capital appreciation, dependable dividend income and continued share repurchases enhances the stock’s total-return prospects. Supported by Citigroup’s robust liquidity and capital levels, its shareholder payout activities appear sustainable.
Total Return Performance
Image Source: Zacks Investment Research
Final View on Citigroup
C’s multi-year transformation is beginning to translate into a stronger earnings profile. The bank’s divestitures, expense-control measures, AI-driven productivity initiatives and increasing focus on higher-return businesses should support revenue growth, operating efficiency and profitability over time. Its solid liquidity position, dividend growth and planned share repurchase further strengthen the investment case.
Wall Street sentiment also remains favorable. Citigroup has an average brokerage recommendation of 1.76 on a scale of 1 to 5, wherein 1 represents Strong Buy and 5 represents Strong Sell. Of the 25 brokerage recommendations, 15 are Strong Buy and three are Buy, representing 60% and 12% of the total, respectively. Check price target & stock forecast for Citigroup here>>>
Brokerage Rating Breakdown for C
Image Source: Zacks Investment Research
Valuation remains another key positive. Citigroup trades at a forward P/E multiple of 10.86X, below the industry average of 14.06X and its peers Bank of America and Wells Fargo’s multiples of 12.44X and 11.32X, respectively. Citigroup’s discounted valuation despite a sharp increase in share price indicates that the market is still pricing in relatively cautious expectations for its long-term earnings potential.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
This leaves scope for further upside. If management continues to improve returns, control costs and narrow the profitability gap with peers, Citigroup could benefit from both earnings growth and valuation-multiple expansion.
As such, supported by improving fundamentals, disciplined capital returns and favorable analyst sentiment, Citigroup offers an attractive combination of value and growth potential.
Citigroup currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Citigroup Stock Still a Buy After Its Blockbuster Q2 Performance?

Key Points
Oil prices are high, inflation is running hot, and Wall Street is tentatively watching consumers.
Bank earnings from the industry giants are in, and the results are very clear.
U.S. consumers appear to be handling the economic headwinds in relative stride.
There's a saying that Wall Street climbs a wall of worry. One of the big worries right now is around inflation, which is running hotter than the Federal Reserve would like, at least partly thanks to high oil prices (driven by a worrying geopolitical conflict in the Middle East). The fear is that the U.S. economy could be tipped into a recession, as strained consumers are forced to pull back.
You can get a look at how well consumers are doing by examining the second quarter results of big banks. If Bank of America (NYSE: BAC), Citigroup (NYSE: C), Wells Fargo (NYSE: WFC), and JPMorgan Chase (NYSE: JPM) are any indication, Wall Street's economic worries may be misplaced.
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The big-bank numbers you need to watch
Two of the key metrics used to identify financial strain among a bank's customers are the charge-off ratio and the non-performing loan ratio. The charge-off ratio is simply the percentage of a bank's loans that it believes are uncollectible. That's basically the worst-case scenario view of the credit situation. The non-performing loan ratio is the percentage of a bank's loans that aren't currently being paid, which could lead to a default. That's basically one step ahead of the charge-off ratio.
Bank of America's customers are fine
Starting with Bank of America, one of the world's largest financial institutions, the story looks pretty good. The bank's charge-off ratio was 0.47% in the second quarter of 2026. That's not a bad number, but it doesn't give you the full picture. The first quarter figure was 0.48%, and the charge-off ratio a year earlier was 0.55%. In other words, it looks like the bank's customers are in better shape today than they were a year ago.
The same trend holds with the non-performing loan ratio. It was 0.47% in the second quarter. That was down slightly from 0.49% in the first quarter and 0.52% a year earlier. So this leading indicator of increasing strain is also moving in a positive direction.
Wells Fargo and JPMorgan Chase customers are fine, too
Wells Fargo's credit metrics showed the same trends as Bank of America. Its net charge-off ratio in the second quarter was 0.34%. That was down from 0.45% in the first quarter and 0.44% a year earlier. The bank's non-performing loan ratio was 0.77%, down from 0.86% in the first quarter and year earlier periods.
JPMorgan Chase's numbers weren't quite as good, but they weren't worrying, either. Its net charge-off ratio was 1.51% in the second quarter of 2026, down from 1.56% in the first quarter and up slightly from 1.48% a year ago. No big moves are taking shape there. Its non-performing loan ratio was more sanguine, with the second quarter figure for its credit card business at 1%, down from 1.15% in the first quarter and 1.07% a year earlier. Credit cards are often where financial strain first shows up.
Citigroup card customers highlight the need to keep watching
That said, Citibank is seeing a slightly weaker trend in its credit card business. The company's general-purpose cards had a non-performing loan rate of 1.3% in the second quarter, up slightly from 1.27% in the first quarter and 1.21% in the year-ago period. The cards the company issues for retailers (private-label cards), which tend to carry more credit risk, had a non-performing loan rate of 2%, down from 2.08% in the first quarter but up from 1.92% in the second quarter of 2025. Citibank's card business is an indication that investors can't ignore the health of the consumer. And yet, the numbers still aren't at worrying levels.
Every bank is different, so these credit metrics are similar but not identical. You really have to take a big-picture view to get a sense of how well consumers are doing right now. When you do that, the answer is that the health of the U.S. consumer is still strong. But, at the same time, the big picture shows that you shouldn't stop monitoring the trends given the geopolitical and economic backdrop.
Should you buy stock in Bank of America right now?
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Wells Fargo is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

What Big Bank Earnings Just Revealed About the Health of the U.S. Consumer

Key Points
Susquehanna trimmed its Sandisk price target to $3,050 this week, while Wells Fargo raised its target to $1,620.
The stock trades around $1,600 as of this writing, after a 52-week range running from $40.10 to $2,354.39.
Sandisk is expected to report fiscal fourth-quarter results in early August.
Wall Street can usually agree on a stock to within a few percentage points. On memory maker Sandisk (NASDAQ: SNDK), it can't come within $1,430 -- at least that is the case for two analysts.
This week, Susquehanna trimmed its price target on the stock to $3,050 from a prior $3,250 and kept its positive rating. Wells Fargo went the other way, raising its target to $1,620 from $1,250 -- and still declined to recommend buying the shares.
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With the stock around $1,600 as of this writing, one firm is saying Sandisk could nearly double within a year. The other is saying today's price is already just about right. They can't both be right, and the gap between them maps the entire debate over arguably the hottest stock of the past year.
That heat is worth restating. Sandisk's 52-week range runs from $40.10 to $2,354.39. At its peak, the stock had traded as much as 58 times higher than its low. Nothing about a move like that is normal, and neither is the disagreement it left behind.
What the $3,050 side believes
Susquehanna's case rests on the idea that this memory cycle is different. NAND flash memory (the storage chips Sandisk makes for phones, PCs, and data centers) has historically been a brutal boom-and-bust business.
The bulls argue that the AI (artificial intelligence) build-out has changed the demand side of that equation. AI inferencing workloads are consuming more storage, suppliers have stayed disciplined about adding capacity, and on this view, supply stays tight through 2027 while today's extraordinary pricing holds.
Sandisk's recent results give the bulls plenty to work with. Fiscal third-quarter revenue rose 251% year over year to $5.95 billion, with non-GAAP (adjusted) gross margin reaching 78.4% -- figures almost unheard of in the memory industry. The company has also signed five multi-year supply agreements, the first three of which alone carry about $42 billion in minimum contractual revenue, a structure designed to smooth exactly the kind of bust the bears fear. And management guided for $30 to $33 in fiscal fourth-quarter adjusted earnings per share, on revenue of $7.75 billion to $8.25 billion.
Annualize the midpoint of that guidance, and you get about $126 in earnings per share. Against earnings power like that, $3,050 works out to about 24 times earnings. That's a premium, but not a fantasy, if the pricing holds.
What the $1,620 side believes
Wells Fargo's target sits nearly on top of the current share price, which makes its message simple: all of this is priced in.
Notably, the firm has been raising its target repeatedly as the stock ran. This week's move to $1,620 came from $1,250, and it still hasn't called the shares a buy.
That pattern captures the cautious side's core belief. The earnings are here today, but NAND prices that tripled on tight supply can retreat once new capacity arrives or buyers pause. And Sandisk's cost structure means falling prices could hit earnings with the same force rising prices lifted them.
The market itself leans closer to Wells Fargo than to Susquehanna. Sandisk trades at a forward price-to-earnings ratio of about 9.
A single-digit forward multiple on a growth stock still compounding at triple-digit rates is the market saying it doesn't fully trust the earnings to last. If investors believed the $30-plus quarterly pace of adjusted earnings were durable, the stock wouldn't be priced like this.
So which side has it right?
Sandisk's fiscal fourth-quarter report, expected in early August, will show if the guided step-up materializes and if the contract-backed pricing is holding. The quarters after that will test how $42 billion of minimum commitments holds up against the handshake demand of past cycles.
I think patience is key. I'd rather see the August numbers first. If the contract-backed model delivers again, there should be plenty of runway left to buy.
Of course, the wide gap itself is telling investors something, too. This is a high-risk stock with a wide range of possible outcomes.
Should you buy stock in Sandisk right now?
Before you buy stock in Sandisk, 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 Sandisk 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 $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% 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 July 25, 2026.
Wells Fargo is an advertising partner of Motley Fool Money. Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Two Wall Street Analysts Just Set Price Targets on Sandisk $1,430 Apart. One of Them Is Going to Be Very Wrong.

Key Points
Despite that, he left his equivalent of a hold recommendation unchanged.
The company remains an important supplier to AI data centers.
On a slightly down Wednesday for the stock market, Sandisk's (NASDAQ: SNDK) equity landed in positive territory. On the back of an analyst's price target raise, the storied memory module specialist finished the trading session 0.6% higher, eclipsing the 0.1% dip of the bellwether S&P 500 index.
More bullish, but not bullish enough
Almost exactly two weeks before Sandisk is scheduled to publish its fiscal fourth quarter of 2026 results, Aaron Rakers of influential bank Wells Fargo made that move. He increased his price target on the specialized tech stock substantially, to $1,620 per share from $1,250.
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That didn't quite make him a bull on Sandisk, as he maintained his equal weight (i.e., hold) recommendation.
According to reports, Rakers wrote that the company has good momentum just now, with increases in long-term, multi-year supply contracts with major cloud computing and data center clients. He also waxed optimistic about Sandisk's strength in the high-end enterprise solid-state drive (eSSD) segment of the market, among other positive factors.
Critical supply
Sandisk has done well as a go-to provider of flash memory (its specialty) for the many clients on the market looking to ramp up artificial intelligence (AI) compute. For believers in the longevity and power of the AI revolution, like myself, the company is a fine play on this.
I'm more bullish than Rakers on the company's future, and while the stock is expensive, it sure looks like a buy to me.
Should you buy stock in Sandisk right now?
Before you buy stock in Sandisk, 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 Sandisk 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 $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 208% 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 July 22, 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Sandisk Stock Was a Winner on Wednesday

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Wells Fargo (WFC).
Wells Fargo currently has an average brokerage recommendation (ABR) of 1.84, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.84 approximates between Strong Buy and Buy.
Of the 25 recommendations that derive the current ABR, 14 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 56% and 4% of all recommendations.
Brokerage Recommendation Trends for WFC
Check price target & stock forecast for Wells Fargo here>>>
The ABR suggests buying Wells Fargo, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABR
Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is WFC a Good Investment?
In terms of earnings estimate revisions for Wells Fargo, the Zacks Consensus Estimate for the current year has increased 0.7% over the past month to $5.28.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Wells Fargo. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Wells Fargo may serve as a useful guide for investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.