Valued at a market cap of $231.9 billion, Wells Fargo & Company (WFC) is a financial services company that provides diversified banking, investment, mortgage, and consumer and commercial finance products and services. The San Francisco, California-based company serves individuals, small businesses, and large corporations. 

This financial giant has outpaced the broader market over the past 52 weeks. Shares of WFC have soared 19.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.6%. Moreover, on a YTD basis, the stock is up 1.1%, compared to SPX’s 5.3% decline. 

Zooming in further, WFC has also outpaced the SPDR S&P Bank ETF’s (KBE) 14.2% gain over the past 52 weeks and 8.7% decline on a YTD basis. 

On Apr. 11, shares of WFC plunged nearly 1% after its mixed Q1 earnings release. On the upside, the company posted earnings of $1.39 per share, which improved 15.8% from the year-ago quarter due to continued cost control and expense discipline. However, on the other hand, its revenue declined 3.4% year-over-year to $20.1 billion, falling short of expectations. This was primarily due to a drop in net interest income, impacted by several factors, including lower interest rates on floating rate assets, shifts in deposit mix and pricing, reduced loan balances, and one fewer day in the quarter. Additionally, revenue declines in the commercial banking and consumer banking and lending segments contributed to the overall top-line weakness.

For the current fiscal year, ending in December, analysts expect WFC’s EPS to grow 6% year over year to $5.85. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters. 

Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 15 “Strong Buy,” two “Moderate Buy,” and seven “Hold” ratings. 

This configuration is slightly more bullish than a month ago, with 14 analysts suggesting a “Strong Buy” rating. 

On Apr 30, Barclays PLC (BCS) analyst Jason Goldberg maintained a “Buy” rating on WFC with a price target of $87, which indicates a 22.5% potential upside from the current levels. 

The mean price target of $77.67 represents a 9.4% upside from WFC’s current price levels, while the Street-high price target of $90 suggests an upside potential of 26.7%.