Topic: How To Invest

Wall Street Stock Forecaster Hotline Friday, October 16, 2020

Article Excerpt

WELLS FARGO & CO., $22.14, New York symbol WFC, is still a buy for long-term gains. The bank set aside less funds for potential bad loans in the third quarter of 2020 compared to the second quarter, as more regions re-opened following the COVID-19 lockdowns in the spring. However, severance payments and other costs related to a plan to cut $10 billion from its annual costs weighed on its earnings. The bank has yet to say when it expects to achieve its cost-cutting target. In addition to those savings, Wells Fargo is exiting less-profitable businesses, including student loans. In the quarter ended June 30, 2020, it set aside $769 million to cover future loan losses. That’s up 10.6% from $695 million in the year-earlier quarter, but much better than $9.53 billion in the second quarter. As a result, overall earnings in the third quarter fell 57.4%, to $1.72 billion from $4.04 billion. Due to fewer shares outstanding, per-share earnings declined 54.3%, to $0.42 from…

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