Wells Fargo & Company
Earnings Preview:
The company is expected to report earnings of $1.09/share on $18.38 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.20/share. The Whisper number is the Street's unofficial view on earnings.
A Closer Look At The Fundamentals:
The company’s earnings grew by double digits over the past three quarters which is a very healthy sign. 2021 was a great year for the company and the stock as both the earnings and the stock price grew nicely.
A Closer Look At The Technicals:
Technically, the stock is acting very well as it just broke out from a big digestion (a.k.a. base) on heavy volume. Typically, whenever you as see a stock break out on heavy volume from a big base that is a sign that the big institutions are accumulating the stock and that tends to be a bullish sign. Going forward, the bulls want to see the stock continue to trade above $52.66 which would mean the break out remains intact.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
