Name of opportunity: 👀
Wells Fargo & Co
Interest rates are down: 👇
The Federal Reserve has cut interest rates by 50 basis points - now, the target range has been lowered to 4.75%-5%. The interest rates before were causing concerns for the US economy, as it’s likely to have been a key factor influencing lower consumer spending. And there have been worries for banks, with an increased possibility of borrowers defaulting on loans.
But now the interest rates are lower, it has led to a boost in the share prices of several major US banks, with Wells Fargo, Citigroup, JP Morgan and Bank of America all rising in value since the news.
How hot is this investment opportunity? 🔥🔥🔥
Analysts predict the price of Wells Fargo & Co. will increase from $54.26 to $61.99 in the next 12 months. If you invested $1000, you might profit $142.50.
The new lower interest rates will be highly likely to encourage more borrowing, with the banks seeing an increased demand for loans - from businesses, as well as from retail banking consumers.
Wells Fargo is currently recommended as a ‘Buy’. According to a report last Friday from stock market site Benzinga, investors who had previously sold their Wells Fargo stock have been buying it back again, because they now think that the value will keep rising.
While Wells Fargo is down 3.88% over the past month, over the past week it has risen overall by 0.97%.
Some analysts have highlighted Wells Fargo as a particularly good bank stock because in the company's Q2 earnings this year, it shared an increase in revenue from investment banking of 38% year-over-year to $430 million. The company is also in a process of restructuring in an effort to cut costs and become more efficient.
Major US bank: 🏦
Wells Fargo & Company is a financial services company. The company provides a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through banking locations and offices, the internet, and other distribution channels to individuals, businesses and institutions in states, the District of Columbia and in countries outside the United States.
Which neme?: 🔍
‘Banks’
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