UBS analyst Brennan Hawken and team explain why they initiated Wells Fargo (WFC) with a Sell rating today:
Andrew Harrer/Bloomberg News
We see risks to Wells Fargo’s revenue growth and credit performance, which coupled with a valuation on the high end of peers and consensus estimates that have not come down much, putsWells Fargo shares at risk of underperformance in our view. While we recognize thatWells Fargo has a strong management team and excellent franchise, we believe these strengths are well understood and therefore likely to be largely priced in.
Wells Fargo’s ability to maintain flat fee revenues seems unlikely: Given the limited upside from rates, we see fee revenues as the greatest component of uncertainty in Wells Fargo’s revenue forecasts. With mortgage revenues unlikely to be a source of revenue strength for some time, growth in WIM revenues is increasingly important. However, beta headwinds and weak retail risk appetites are likely to weigh on WIM revenues this year. Even beyond near-term headwinds, we believe Wells Fargo’s greater exposure to mass affluent clients means they are more exposed to downside from the pending DOL fiduciary proposal.
Top Heal Care Stocks To Watch Right Now: Mercury Systems Inc(MRCY)
Advisors’ Opinion:
- [By Steve Symington]
Shares of Mercury Systems Inc. (NASDAQ:MRCY) were down 10.2% as of 2:20 p.m. EDT Wednesday after the defense electronics contractor announced weaker-than-expected fiscal third-quarter 2018 results.
- [By Lisa Levin]
Shares of Mercury Systems, Inc. (NASDAQ: MRCY) were down 19 percent to $34.7483 as the company posted downbeat Q3 results.
HFF, Inc. (NYSE: HF) was down, falling around 13 percent to $40.90 following weaker-than-expected quarterly results.
- [By Max Byerly]
Mercury Systems (NASDAQ: MRCY) and Vishay Intertechnology (NYSE:VSH) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
Top Heal Care Stocks To Watch Right Now: Arrow Financial Corporation(AROW)
Advisors’ Opinion:
- [By Ethan Ryder]
PacWest Banc (NASDAQ: PACW) and Arrow Financial (NASDAQ:AROW) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Top Heal Care Stocks To Watch Right Now: CarMax Inc(KMX)
Advisors’ Opinion:
- [By Andy Pai]
CarMax, Inc (NYSE: KMX) is the second most undervalued stock in the portfolio. The company's blended upside of 17.8 percent is very intriguing.
- [By Trey Thoelcke]
CarMax Inc. (NYSE: KMX) is set to release its most recent quarterly results first thing on Wednesday. The consensus forecast calls for $0.88 in EPS and $4.21 billion in revenue for the fiscal fourth quarter. Shares traded on Thursdays close at $61.94. The consensus price target is $77.71, and the 52-week range is $54.29 to $77.64.
- [By Demitrios Kalogeropoulos]
CarMax (NYSE:KMX) recently posted quarterly earnings results that were marked by a slowdown in sales growth. The used-car retailer endured a painful drop in customer traffic, which led sales to inch higher by less than 1% despite an aggressive expansion in its store base.
- [By ]
Winners will collect specialized data, and their customers will understand why they are providing data. Among the companies that are already doing this is CarMax (NYSE: KMX).
