Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

US bank earnings and price forecasts: Wells Fargo Q2 2022 results preview

Wells Fargo Q2 results are expected to show a year on year decline in both earnings and revenue.

USA Source: Bloomberg

When are the Wells Fargo results expected?

Wells Fargo is set to release second quarter (Q2) results for the fiscal year 2022 on 15 July 2022.

What are The Street’s expectations for the Q2 2022 results?

The Street’s expectations for the upcoming results are as follows:

  • Revenue of $17.580 billion: -13.27% year on year (YoY)
  • Earnings per share $0.83: -39.91% YoY

How to trade Wells Fargo into the results

How to trade Citigroup into the results Source: Refinitiv
How to trade Citigroup into the results Source: Refinitiv


Refinitive data shows a consensus of (28) analyst ratings at ‘buy’ for Wells Fargo. A mean of estimates suggest a long-term share price target of $54.70 for the company. The current share price trades at a 37% discount to this assumed long-term fair value (as of the 12th of July 2022).

Client Sentiment Source: IG
Client Sentiment Source: IG


IG sentiment data shows that 86% of clients with open positions on the share (as of the 12th of July 2022) expect the price to rise over the near term, while 14% of these clients expect the price to fall.

How does Wells Fargo compare to its peers in terms of valuation?

How does Citigroup compare to its peers in terms of valuation Source: IG
How does Citigroup compare to its peers in terms of valuation Source: IG


The above table compares Wells Fargo against a peer average (which includes Goldman Sachs, Bank of America (BoA), Citigroup, JP Morgan and Morgan Stanley) in terms of dividend yield and price to earnings (P/E) multiples.

Wells Fargo currently trades at a slight discount to its sector peers in terms of a historical P/E and slight premium in terms of a forward P/E assumption. The company has a lower historical dividend yield to its peers in aggregate.

Wells Fargo – technical view

Wells Fargo – Technical view Source: IG charts
Wells Fargo – Technical view Source: IG charts


The long term price trend for the share price of Wells Fargo remains down, evidenced by the price trading firmly below the 200-day simple moving average (SMA) - blue line - and the red trend line on our chart.

A downside break (confirmed with a close) of the 39.85 level would call for further decline with 34.40 the initial target considered. Only if a rebound takes the price back above the major high at 46.10, would we reassess the merits of returning a long bias to trades on the company.

Summary

  • Wells Fargo is set to release Q2 2022 results on 15 July 2022
  • Q2 2022 are expected to show a year on year decline in both revenue and earnings per share
  • Long-term broker consensus suggests the share to currently be a ‘buy’, with a longer term price target of $54.70
  • IG clients with open positions on the share are predominantly long

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get commission from just 0.08% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.