WFC

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%. Image Source: Zacks Investment Research 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. 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. Over the past six months, shares of US Bancorp have rallied 18.9% compared with the industry’s growth of 23.9%. Image Source: Zacks Investment Research 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. 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 Wells Fargo & Company (WFC) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wells Fargo stock has delivered a strong 137.3% return over the past 3 years, yet several valuation checks still suggest the shares may trade below an internally estimated intrinsic value. With both the Excess Returns model and market multiples pointing in the same direction, the current price invites closer scrutiny of what investors are paying for the bank’s progress and plans. The 137.3% gain over 3 years signals that Wells Fargo has already rewarded patient shareholders, so any perceived discount today needs to be weighed against how much of the recovery story is already reflected in the price. On the upside, Wells Fargo’s push to revamp and expand its wealth management arm and deepen adviser relationships can support earnings power, while exposure to interest rate and credit conditions remains a key risk for how reliably those cash flows materialise. With a value score of 4, the stock screens as a mixed picture rather than a clear bargain or clear overvaluation on the broader set of checks. The issue now is whether Wells Fargo’s current market price already reflects the intrinsic value implied by these models or still leaves a meaningful gap for investors to consider. Spot potential next candidates with valuation profiles similar to Wells Fargo by scanning hand picked 52 high quality undervalued stocks, which also combine earnings strength with balance sheet support. The Excess Returns model looks at how much profit Wells Fargo can earn on its equity above the cost of that equity and then capitalises that gap. For Wells Fargo, the inputs suggest a bank earning a stable level of profitability on a solid capital base. Book Value is $54.43 per share and the Stable Book Value estimate is $61.39 per share, supported by an Average Return on Equity of 13.44%. Against a Cost of Equity of $5.29 per share, the model calculates an Excess Return of $2.96 per share and a Stable EPS figure of $8.25 per share. On these assumptions, the Excess Returns framework points to an intrinsic value of $121.60 per share. This implies Wells Fargo stock is trading at about a 26.7% discount and therefore screens as undervalued. Wells Fargo’s $1.5 billion wealth management revamp and adviser hiring push help explain why the model assumes the bank can sustain returns modestly above its equity cost despite sector competition. The current share price, which also reflects market concerns about rates and credit, remains below what this earnings power would justify. On balance, the Excess Returns model suggests Wells Fargo stock appears undervalued relative to the earnings it is expected to generate on its equity base. Our Excess Returns analysis suggests Wells Fargo is undervalued by 26.7%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Wells Fargo. P/E is a useful cross check for Wells Fargo because earnings are a core focus for bank investors and are widely comparable across the sector. On this measure, Wells Fargo trades on a P/E of 12.5x, slightly below the US banks industry average of 11.9x and below the peer group average of 13.5x. The more tailored fair P/E ratio for Wells Fargo is 14.5x, which reflects what investors might be willing to pay given its size, risk profile and earnings characteristics. Against the current 12.5x, that indicates the stock trades at a discount on this model rather than being priced at a premium to similar banks. On the P/E multiple, Wells Fargo stock appears undervalued compared with where a typical buyer might expect it to trade. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Wells Fargo pick up where the valuation models stop and focus on the story that would need to unfold for the current stock price to look high or low. They spell out the implied path for Wells Fargo's growth, margins and earnings that sits behind each estimate, so you can see which future is being assumed and watch over time whether the business actually moves in that direction. Share a narrative on Wells Fargo that presents your own numbers and expectations for the stock. Include a view on whether the bank's US$1.5b wealth management revamp and adviser hiring push delivers the kind of earnings profile you think the current price assumes. Do you think there's more to the story for Wells Fargo? Head over to our Community to see what others are saying! For Wells Fargo, both the Excess Returns intrinsic value estimate and the P/E based comparison point to a stock that still screens as undervalued rather than fully priced. The broader valuation checks look mixed, so the gap between market price and intrinsic value is not a simple green light and may reflect concern about execution and risk. What matters most from here is whether Wells Fargo converts its wealth management revamp and adviser expansion into steady, reliable earnings that justify a stronger valuation while still accounting for the interest rate and credit cycle risks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WFC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Few chip stocks have captured the AI trade quite like Marvell Technology (MRVL) this year. Shares of the picks-and-shovels AI player are up 24% in three months and nearly 164% year to date as per Seeking Alpha, with investors valuing it structurally differently than in years past. Ahead of pivotal Q2 earnings, Wells Fargo analyst Aaron Rakers sharply bumped his price target, signaling more than a one-quarter beat. Marvell’s investment case rests on multiple reinforcing pillars, including outside Big Tech investment from the likes of Nvidia and Google, along with rising demand from hyperscalers for its custom silicon. However, expectations are now elevated, and a routine beat might not prove to be enough. But Rakers’ latest call suggests Wells Fargo is seeing something beyond its Q2 numbers, with Marvell’s longer-term earnings power becoming the bigger story. Wells Fargo just made an aggressive reset to its Marvell stock price target, with 5-star analyst Aaron Rakers (with a 71% success rate) bumping his price target to $310 from $240, while maintaining an Overweight rating. More AI: Nvidia just made a move Wall Street wasn’t ready for Microsoft just took sides in AI policy fight OpenAI just disclosed something genuinely alarming The $70 increase in the target implies a 29% bump, and at roughly $230 in premarket trading on August 24, the new target implies about 35% upside. That said, the pertinent question is what changed for Rakers to raise its price target in such emphatic fashion. The most immediate catalyst is Marrvell’s expanded Google-parent Alphabet (GOOG) partnership, with Rakers underwriting a far bigger long-term custom-silicon opportunity. Marvell’s agreement now covers a far wider range of chips across Google’s TPU ecosystem, including AI inference accelerators, storage controllers, network interface chips, and memory interface controllers. Additionally, Google received warrants for up to 58.97 million Marvell shares at $206.58, with the bulk of vesting linked to custom-product purchases. That structure could potentially yield a $120 billion in purchases through 2033 based on its milestones, offering investors a remarkably tangible indication of the massive relationship that could eventually become. In other words, the argument shifts from Marvell having a huge AI contract to it becoming one of the major long-term custom-silicon platforms for hyperscalers. Consequently, Rakers is now looking toward nearly $11 of fiscal 2029 EPS. If those figures come to fruition, the $310 target works out mathematically to about 28 times FY29 earnings. That is remarkably more attractive compared to its current pricing multiple of around 78-times trailing 12-month non-GAAP earnings, which is 85% higher than its 5-year average according to Seeking Alpha data. Marvell Technology’s nearly 200% 6-month gain looks insane even in an AI-driven market. What’s interesting is that, despite the choppiness in many of the poster-child AI stocks, Marvell has kept up the incredible pace from last year. Also read: Morgan Stanley resets Nvidia stock forecast ahead of earnings A lot of it is how Wall Street has effectively reclassified Marvell. It was viewed as a networking and connectivity chipmaker, but now investors view it more of critical supplier in AI infrastructure, covering everything from custom AI chips to optical connectivity. That enthusiasm is supported by its tremendous operating results, where its fiscal 2026 sales surged 42% to $8.2 billion. Moreover, its management expects fiscal 2027 sales to rise to $11 billion, while fiscal 2028 forecasts have already been bumped from $15 billion to $16.5 billion. Custom chips have become an even bigger part of its growth story. Marvell said that its custom-chip sales actually doubled in fiscal 2026, expects them to more than double again in fiscal 2028, with the business expected to surpass $10 billion in fiscal 2029. CEO Matt Murphy talked about the incredible opportunity in Marvell’s Q1 earnings call, “The level of custom engagement with key customers remains unprecedented, and we continue to be deeply involved in a broad set of significant additional opportunities.” Outside validation is a big part of Marvell’s growing AI opportunity. According to Yahoo Finance, Nvidia (NVDA) invested an eye-brow raising $2 billion in Marvell back in March, forming a partnership spanning customized chips, networking, and photonics. In June, according to CNBC, Nvidia CEO Jensen Huang took things up a notch, calling Marvell the “next trillion-dollar company”. Moreover, Marvell also benefits immensely as AI systems get bigger. More Nvidia GPUs mean more data is moving between chips, which creates demand for quicker switches, optical connections, and networking products. Specifically, its scale-out switching business alone is forecasted to rise to $600 million in fiscal 2027, approaching a $1 billion annualized rate in fiscal 2028. Moreover, the Celestial AI acquisition adds another growth engine for optical connectivity, while Google might see it as its strongest validation yet. According to CNBC, the expanded Marvell partnership covers tailor-made AI accelerators and networking chips, with warrants linked to purchases that could represent up to $120 billion through fiscal 2033 if all milestones are met. Though that’s not guaranteed sales, it helps explain why investors are valuing Marvell so differently. Marvell’s fiscal Q2 earnings on August 27 suddenly carry a lot more weight than a typical quarterly update. Wall Street expects $2.71 billion in revenue, up 35% year over year, with adjusted EPS of $0.93. That is virtually in line with Marvell’s own guidance of $2.70 billion in sales, plus or minus 5%, and EPS of $0.93, plus or minus five cents. That means Wall Street is expecting a lot from Marvell, and simply hitting expectations might not be enough. Also, a lot of the positive news, including stronger earnings, might be priced in already. That means the bigger issue is what comes next. Management needs to show that fiscal 2027 growth can remain robust and its fiscal 2028 revenue sales still have room to move higher and if Marvell can benefit a lot more as AI clusters become larger and more complex. Additionally, Google will be at the center of the conversation. Investors will want greater clarity on when meaningful sales will begin to flow through its income statement and how much of that opportunity is already reflected in its forecasts. Wells Fargo’s $310 target is a lot higher than Wall Street’s consensus of around $266, as per Seeking Alpha, and is a bet that Marvell’s earnings power will be a lot larger than previously forecasted. Though the entire thesis might not need to be proven, it does need to show bookings, customer ramps, and guidance are moving in the correct direction. Related: Jim Cramer resets major rule for retirement investors This story was originally published by TheStreet on Aug 24, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

Since February 2026, Wells Fargo has been in a holding pattern, posting a small loss of 1.5% while floating around $83.87. The stock also fell short of the S&P 500’s 12.7% gain during that period. Is now the time to buy Wells Fargo, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free. We don’t have much confidence in Wells Fargo. Here are three reasons why there are better opportunities than WFC, plus one stock we’d rather own. Our experience and research show the market cares primarily about a bank’s net interest income growth as one-time fees are considered a lower-quality and non-recurring revenue source. Wells Fargo’s net interest income has grown at a 6% annualized rate over the last five years, worse than the broader banking industry. Net interest margin (NIM) serves as a critical gauge of a bank’s fundamental profitability by showing the spread between interest income and interest expenses. It’s essential for understanding whether a firm can sustainably generate returns from its lending operations. Over the past two years, Wells Fargo’s net interest margin averaged 2.6%. Its margin also contracted by 33.6 basis points (100 basis points = 1 percentage point) over that period. This decline was a headwind for its net interest income. While prevailing rates are a major determinant of net interest margin changes over time, the decline could mean that Wells Fargo either faced competition for loans and deposits or experienced a negative mix shift in its balance sheet composition. A bank’s tangible book value per share (TBVPS) increases when it generates higher net interest margins and keeps credit losses low, allowing it to compound shareholder value over time. Over the next 12 months, Consensus estimates call for Wells Fargo’s TBVPS to grow by 7.9% to $49.85, paltry growth rate. Wells Fargo doesn’t pass our quality test. With its shares lagging the market recently, the stock trades at 1.5× forward P/B (or $83.87 per share). This valuation tells us a lot of optimism is priced in - you can find more timely opportunities elsewhere. We’d suggest looking at a fast-growing restaurant franchise with an A+ ranch dressing sauce. ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. After a strong three year run that has seen Wells Fargo deliver a 126.5% total return, valuation checks still suggest the stock trades at a discount to its intrinsic value estimate rather than at a clear premium. Over the past three years Wells Fargo has returned 126.5%, which puts more focus on whether recent gains are already baking in most of the good news. Investor sentiment toward large banks may benefit from the current rotation into financial stocks and the role Wells Fargo plays in credit and capital markets. At the same time, sensitivity to future interest rate decisions remains a key risk to the valuation case. On Simply Wall St's checks Wells Fargo scores 4 out of 6 on valuation, which points to a mixed picture where several indicators flag the shares as undervalued but not every metric lines up. The issue now is whether the current share price still offers an attractive margin against Wells Fargo's intrinsic value estimate or whether most of that gap has already closed. Find out why Wells Fargo's 15.2% return over the last year is lagging behind its peers. The Excess Returns model values Wells Fargo by comparing the profit it is expected to earn on its equity base with the return investors require. The key inputs here are a Book Value of $54.43 per share and a Stable EPS estimate of $8.25 per share, based on future return on equity estimates from 17 analysts. With an average Return on Equity of 13.44% and a Cost of Equity of $5.36 per share, the model estimates an Excess Return of $2.89 per share on a Stable Book Value of $61.39 per share. That stream of excess returns translates into an intrinsic value of about $119 per share using this approach, which implies Wells Fargo trades at a discount of roughly 26.6% to that estimate. Recent momentum in bank stocks as investors rotate from AI high flyers into financials helps explain why the gap has narrowed, although the model still points to upside based on current fundamentals. On this Excess Returns view, Wells Fargo stock screens as undervalued relative to its estimated intrinsic worth. Our Excess Returns analysis suggests Wells Fargo is undervalued by 26.6%. Track this in your watchlist or portfolio, or discover 50 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Wells Fargo. The P/E ratio is a useful cross check for Wells Fargo because earnings are a key yardstick investors use when comparing large banks. Wells Fargo trades on a P/E of 12.2x, which is slightly above the broader banks industry average of 12.0x but below the peer group average of 13.7x. According to Simply Wall St's fair multiple estimate, Wells Fargo would trade closer to 15.1x earnings based on its profile. That is above the current 12.2x, which suggests the stock changes hands at a discount to what this framework implies. While recent momentum in large bank stocks has improved sentiment, the current P/E still sits below both that tailored fair ratio and the typical level for similar peers. Taken together, Wells Fargo appears undervalued on the P/E multiple compared with both its peers and the modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Wells Fargo valuation checks leave off by spelling out which paths for growth, margins, and earnings would need to play out for the stock to be worth clearly more or clearly less than today's price. They sit on the company’s Community page. Each narrative frames Wells Fargo's fair value as a thesis about the business that you can watch over time rather than a one off snapshot. Share a narrative on Wells Fargo in the Simply Wall St community to set out your number driven view on whether the current rotation into bank stocks and expectations for future interest rate decisions support today's price. It is a chance to put your thesis on record and see how it holds up as new data on Wells Fargo's earnings and returns comes through. Do you think there's more to the story for Wells Fargo? Head over to our Community to see what others are saying! For investors looking at Wells Fargo today, both the Excess Returns intrinsic value estimate and the P/E cross check indicate a stock that currently appears undervalued rather than clearly fully priced. The broader valuation checks are mixed rather than emphatic, so the case depends on whether current profitability and capital returns can be maintained without a material reset in expectations. The key issue from here is how Wells Fargo manages the trade off between earnings power and sensitivity to future interest rate decisions. If the market becomes more confident in that balance, the current discount may appear to some investors as an opportunity rather than a potential value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WFC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for Wells Fargo (WFC). Shares have added about 1.6% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Wells Fargo due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Wells Fargo reported second-quarter 2026 adjusted earnings per share of $1.96, which surpassed the Zacks Consensus Estimate of $1.73. In the prior-year quarter, the company reported earnings per share of $1.54. Results benefited from an improvement in net interest income, higher non-interest income, and lower provisions. Higher loan balances and improved deposits were other positives. However, increased non-interest expenses remained a headwind. Results included 4 cents per share of discrete tax benefits related to the resolution of prior-period matters. After considering this, net income (GAAP basis) was $6.41 billion, representing a 16.6% increase from the prior-year quarter. Revenues Improve, Expenses Rise Total revenues were $22.62 billion, surpassing the Zacks Consensus Estimate of $21.80 billion. Also, the top line increased 8.6% from the year-ago quarter. NII was $12.32 billion, up 5.2% year over year. The increase was driven by lower deposit costs, higher loan and investment securities balances, balance sheet growth in the Markets business and higher interest-bearing commercial deposits, partially offset by the impact of lower interest rates on floating-rate assets and a modest decline in noninterest-bearing deposits. The net interest margin (on a taxable-equivalent basis) contracted 25 basis points year over year to 2.43%. Non-interest income grew 13.1% year over year to $10.31 billion. The increase was driven by strong performance from venture capital investments, higher investment advisory fees on improved market valuations, higher investment banking fees and increases in most other fee categories, partially offset by lower lease income related to the sale of the railcar leasing business. Non-interest expenses of $13.66 billion increased 2.1% year over year. The increase was due to higher revenue-related and incentive compensation, increased technology and equipment expense and higher advertising expense, partly offset by lower lease expense and continued efficiency initiatives, including a 7% reduction in headcount. Wells Fargo's efficiency ratio of 60% was lower than 64% in the year-ago quarter. A decline in the efficiency ratio indicates improvement in profitability. Loan Balance & Deposits Improve As of June 30, 2026, total average loans were $1.03 trillion, which increased 3.1% on a sequential basis. Total average deposits were $1.47 trillion, up 3.6% on a sequential basis. Credit Quality Improves The provision for credit losses was $914 million, down 9.1% from the year-ago quarter. Net loan charge-offs were 0.34% of average loans in the reported quarter, down from 0.44% in the year-ago quarter. Non-performing assets declined marginally year over year to $7.94 billion. Capital Ratios Decline As of June 30, 2026, the Common Equity Tier 1 ratio under the Standardized Approach was 10.3%, down from 11.1% in the prior-year quarter. Profitability Ratios Improve Return on assets was 1.15% compared with 1.14% in the prior-year quarter. Return on equity was 15.0%, up from 12.8% a year ago. Third Quarter 2026 The company expects modest NIM compression, broadly in line with the 4-basis-point sequential decline recorded in the second quarter. Deposit costs are projected to increase slightly due to continued growth in interest-bearing commercial and institutional deposits. Fourth Quarter 2026 Wells Fargo expects NIM to stabilize following the anticipated third-quarter compression. The stabilization is expected to be supported by slower Markets balance-sheet growth, earning-asset expansion and continued repricing of the securities portfolio. Average loan growth is expected to exceed the mid-single-digit increase projected earlier, reflecting stronger commercial, auto and credit card lending. 2026 Wells Fargo expects NII to be approximately $50 billion. NII excluding Markets is projected to be around $48 billion, driven by balance-sheet growth, a favorable loan and deposit mix, and continued fixed-asset repricing, partially offset by the impact of expected rate cuts. Markets NII is expected to be around $2 billion, reflecting client-driven balance-sheet growth in lower-risk, lower-margin assets, compared with earlier expectations of an increase driven by lower short-term funding costs and client financings. The company continues to expect stronger NII growth in the second half of 2026 than in the first half. Average loans are expected to increase mid-single digits, primarily driven by growth in commercial, auto, and credit card lending. Average deposits are expected to increase by mid-single digits across all operating segments. Non-interest expenses are projected to be around $55.7 billion. This is due to higher revenue-related compensation along with increased FDIC assessments, and continued investments in technology and other strategic initiatives. It turns out, fresh estimates have trended upward during the past month. Currently, Wells Fargo has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Wells Fargo has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. 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 Wells Fargo & Company (WFC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

(Bloomberg) -- Aggressive AI spending plans by Amazon.com Inc., Microsoft Corp. and Alphabet Inc. provided fresh evidence that demand for chips and related equipment will remain strong, offering relief to a sector that’s been battered in recent days. Most Read from Bloomberg Chip Stocks Post Biggest Advance Since April 2025: Markets Wrap US Strikes Iran Again as Conflict Spreads Across Middle East Bond Yields at 19-Year High Send Warsh Credibility Warning Warner Bros. Deal Collapse Would Cost the Ellisons $9.8 Billion Microsoft’s $450 Billion Jump Is Biggest in Stock Market History Amazon boosted its forecast for full-year capital expenditures to $220 billion on Thursday, up from a previous estimate of $200 billion. And Chief Executive Officer Andy Jassy said most of that spending will go toward artificial intelligence. The outlook was part of a rush of earnings reports delivered by so-called hyperscalers — the world’s largest cloud computing providers — and they showed there’s been no letup in ambitions for building AI infrastructure. Microsoft affirmed its capital expenditure forecast, absent the impact of an accounting change. Google parent Alphabet raised its spending outlook, and Meta Platforms Inc. increased the low end of its guidance for capital expenditures. That’s good news for the businesses that make chips, networking gear and other technology used in data centers. Fears of a potential spending slowdown had weighed on shares of those companies. Now their outlook for the coming year is brightening, according to Bloomberg Intelligence analysts Kunjan Sobhani and Oscar Hernandez Tejada. “With most large hyperscalers raising or reiterating capital spending plans in their earnings commentary, the likelihood of upside to 2026-27 consensus for computing and networking chipmakers is growing,” they said in a note. Amazon investors applauded its results, which showed that cloud computing revenue accelerated for a fifth straight quarter. The message: The company’s spending spree is getting results. Microsoft got a similarly warm reception. It added nearly half a trillion dollars to its valuation on Thursday after reporting the fastest cloud growth in four years. The $450 billion increase to its market capitalization was the biggest single bump for any company in history. Investors were less impressed with Meta and Alphabet. In both cases, the companies were dogged by concerns that their expenditures didn’t have a clear payoff. Meta, owner of Facebook and Instagram, dropped nearly 8% on Thursday following its report. It delivered a weak sales forecast paired with commitments for almost $700 billion in future spending. It’s no longer enough to show that a company is investing heavily in AI, said Ken Gawrelski, an analyst at Wells Fargo & Co. Investors increasingly want to see a return, he said. “Go back 12 to 18 months ago, it was about how much could you spend and how much capacity could you bring online,” he said. “Now the market has pivoted, and is rightly focused on the return on investment.” Google fell 7.1% on July 23, the day after projecting full-year capital expenditures will be $195 billion to $205 billion in 2026. That was up from a previous forecast of $190 billion. In any case, all that spending is poised to benefit suppliers that had been under a cloud recently. Samsung Electronics Co. and SK Hynix Inc., which make memory chips, slumped earlier this week — only to rebound on the latest spending signals. CoreWeave Inc., Nebius Group NV, Intel Corp. and Nvidia Corp. are emerging from similar slumps. Several of these companies were among the public holdings of Leopold Aschenbrenner’s hedge fund, Situational Awareness, which sold off some of its equity positions after suffering losses in the AI stock rout in recent weeks, according to people familiar with the matter. That may have accounted for some of the stock declines. The question now is whether chipmakers and other equipment makers can maintain a resurgence, said Bloomberg Intelligence’s Sobhani. Data center companies indicated that they may slow spending if needed, he noted, so a windfall isn’t guaranteed. “For semiconductor stocks, it should help stabilize sentiment, but might not be enough to swing things around for a large upside in stocks,” he said. Most Read from Bloomberg Businessweek How a Few Hundred Dollars Could Manipulate Election Prediction Markets Canada’s MAGA-Friendly Premier Advances Her Pro-Oil Agenda The Menopause Gold Rush Is Failing Women The Bitcoin Slump Is Crushing Companies That Stockpiled Tokens The AI Industry Is Trying to Fix Its Image Problem ©2026 Bloomberg L.P.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rail North America fleet utilization remained high at 98% with a strong renewal success rate of 82.6%. The renewal lease price index (LPI) increased by 16.8%, supported by favorable supply-demand dynamics. Asset remarketing activity was robust, with gains on asset dispositions reaching $67.7 million in Q2 2026. The Wells Fargo rail acquisition is delivering benefits ahead of expectations, with EPS contribution likely at least double the initial estimate. The engine leasing segment performed excellently, driven by strong air travel trends and favorable market fundamentals. Rail Europe faced challenging economic conditions, though fleet utilization remained solid at 95.3%. The LPI was negatively impacted by an outsized quarter of sand car renewals, which had lower lease rates. Maintenance expense in Rail North America was lumpy, though in line with the full-year target of $500 million. The engine leasing segment's other income was boosted by one-time maintenance reserve releases, which are not expected to recur at the same level. The company faces uncertainty from Section 232 tariffs on imported tank cars, though no material impact has been realized to date. Here are the key highlights from the GATX Corp (NYSE:GATX) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 8 Warning Signs with GATX. Is GATX fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the Wells Fargo rail acquisition benefits? You previously expected a $0.20 to $0.30 EPS benefit for 2026. Is that still the expectation? A: (Tom Ellman, CFO) We now believe we will at least double that initial expectation. The outperformance is driven by three factors: better-than-anticipated day-to-day portfolio performance from applying our operational rigor, the potential for additional management fees from asset sales in the Brookfield-owned portfolio due to the strong secondary market, and the remarketing gains which are on track. Q: The Lease Price Index (LPI) came in at 16.8%. Can you share what the LPI would have been without the outsized sand car renewals, and do you still see high-teens to low-20s for the full year? A: (Paul Chitterton, President of Rail North America & Bob Lyons, CEO) We don't break out car-type specifics, but the sand car renewals were a significant factor. The high renewal success rate on sand cars was a positive economic decision, as keeping cars on lease is better than taking them back, but it negatively impacted the LPI. (Bob Lyons) This was an anomaly; we renewed more cars than anticipated, which is good for long-term P&L but a short-term negative on LPI. Q: The engine leasing "other income" line stepped up to $13.7 million. What is behind this, and how should we model it going forward? A: (Tom Ellman, CFO) This income comes from releasing maintenance reserves that are no longer required for maintenance, typically at the end of a lease. This activity is regular but lumpy. Q2 was a particularly significant quarter for these releases, so we would not expect this level to persist quarter-to-quarter. Q: On the gains on asset sales, can you provide an update on the split between the legacy portfolio and the joint venture (JV) portfolio relative to your full-year targets of $130 million and $70 million, respectively? A: (Tom Ellman, CFO & Bob Lyons, CEO) The JV is right on pace, generating roughly a third of its $70 million target in Q2. The legacy portfolio is running well ahead of the $130 million target, and we will likely exceed that for the full year. Year-to-date, net gains are $118 million, with roughly $25 million from the JV and $94 million from the legacy portfolio. Q: How are tariffs impacting your railcar buying decisions, particularly for tank cars? A: (Paul Chitterton, President of Rail North America) While Section 232 tariffs exist, the situation is very fluid. Contractually, GATX is responsible for tariffs, but to date, there has been no material impact. It is not affecting our investment behavior, especially under our existing supply agreement. Q: With the strong secondary market, you sold more railcars than you added in Q2. What is the right level of attrition for the fleet, and what would you need to see to start growing the fleet again? A: (Bob Lyons, CEO & Paul Chitterton, President of Rail North America) We don't focus intently on the exact fleet size quarter-to-quarter. Our focus is on optimizing the portfolio through smart investment and remarketing. (Paul Chitterton) We are economic actors. We will increase investment when pricing for assets and financing, combined with market demand, makes sense. Currently, it is more attractive to sell into the strong secondary market. Q: The renewal success rate was very high at 82.6%. Does this tie into any further tightening in the rail market or an inflection in spot lease rates? A: (Paul Chitterton, President of Rail North America) The positive factors you mentionrising carloads and tightening truck capacityare tailwinds. However, the primary driver of our confidence is the supply-led market, where the overall North American rail fleet continues to shrink. This combination of rising demand and shrinking supply supports a firm lease-rate and utilization environment. Q: You exercised your option to buy an additional 3.5% of the JV early. What is the message regarding your optimism about the Wells Fargo deal? A: (Bob Lyons, CEO) The option was not pulled forward; it was set for June 30th. Our expectation is to exercise these options annually, but they are options, not obligations. The fact that we are already selling assets from the JV portfolio at a premium to the book value we paid for them on January 1st demonstrates the value we saw in the deal. Q: You mentioned that the maintenance savings from the Wells Fargo deal would take 1-2 years. Can you provide an update on that timeline? A: (Bob Lyons, CEO) The timeline is the same. It will be a couple of years before we have capacity in our own shops to move Wells cars in-house. However, we are already seeing material benefits from applying our rigorous management to the third-party maintenance network, which is contributing to the guidance increase. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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. 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 » 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. 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'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. 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. Before you buy stock in Bank of America, 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 Bank of America 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. See the 10 stocks » *Stock Advisor returns as of July 25, 2026. 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. What Big Bank Earnings Just Revealed About the Health of the U.S. Consumer was originally published by The Motley Fool