Wells Fargo & Co. stock is testing 2015 resistance despite a presidential tongue-lashing and government review that could yield tens of millions in fees and penalties as punishment for wrongly charged mortgages and a 2016 sales scandal. Bullish fundamentals have proved more potent than shady business dealings in the most recent ramp, with deregulation and yield-steepening rate hikes likely to increase 2018 profits.
The stock has underperformed its commercial rivals since the scandal story broke in 2016, stuck in a multi-year trading range while competitors have lifted to bull market highs. However, Wells Fargo could play catch-up when penalties are issued and fresh apologies hit the newswires, telling investors and long-term market timers to consider this special situation play for their 2018 portfolios. (For more, see: Trump Says Fines Against Wells Fargo Could Be Increased.)
Wells Fargo stock has rallied back to the 2015 high and completed a cup and handle pattern despite presidential criticism. …read more
Read more here: Wells Fargo Stock Could Break Out Despite Federal Threats