Jump to content

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


Recommended Posts

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

USASource: Bloomberg
 
 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 12 July 2022 

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 Citigroup into the results

How to trade Citigroup into the resultsSource: 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 SentimentSource: 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 Citigroup compare to its peers in terms of valuation?

How does Citigroup compare to its peers in terms of valuationSource: 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 viewSource: 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
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Silver Elliott Wave Analysis Function -Counter-Trend Mode - Corrective Structure - Expected Impulse or Zigzag for wave C (circled) Position - Wave 1 of (1) Direction - Wave 2 of (1) of C (circled) Details - It appears wave B (circled) has been completed and wave C (circled) is now emerging upside. We are now counting a pullback in wave 2 of (1) or wave (2). The current dynamics in the silver market present an intriguing opportunity. Silver is recovering from a pullback that began in late May 2024, and this recovery is expected to ignite a series of rallies, continuing the year-long bullish impulse cycle. Both long-term and medium-term Elliott Wave forecasts support the potential for further upward movement in this precious metal.   Daily Chart Analysis On the daily chart, we can observe that the impulse wave sequence, which began in January 2024, culminated in May 2024, followed by a corrective pullback. This bearish corrective structure persisted for five weeks and appears to have concluded with a double zigzag pattern. The shallowness of this correction suggests a potential for another leg lower. However, if the impulsive reaction from late June continues to ascend without turning corrective, it would confirm that the market has embraced the shallow nature of the pullback. This scenario is likely to propel silver prices higher, potentially reaching new highs in 2024. H4 Chart Analysis The H4 chart provides a closer look at the sub-waves of wave B (circled) and the early stages of wave C (circled). The price appears to have completed wave 1 of C (circled) at 31.75 and is currently undergoing a pullback in wave 2. Wave 2 could potentially extend lower to the 30.15-29.77 range, which represents the 50-61.8% Fibonacci retracement levels. This zone is where the price could find support, setting the stage for the commencement of wave 3, which is anticipated to drive silver to fresh highs in 2024. It is crucial to monitor that the price remains above 28.57, as a break below this level would indicate that wave B might extend lower, altering the expected bullish trajectory.   Summary In summary, the Elliott Wave analysis suggests that silver is in the midst of a recovery from a recent pullback, with the potential for significant rallies ahead. The key levels to watch include the 30.15-29.77 range for wave 2 support and 28.57 as a critical support level. If the current impulse wave continues to rise, it will confirm the shallow nature of the pullback and support the projection of new highs for silver in 2024. This analysis underscores the importance of closely monitoring wave structures and key price levels to anticipate future movements in the silver market. Technical Analyst : Sanmi Adeagbo Source : Tradinglounge.com get trial here!  
    • COST Elliott Wave Analysis Trading Lounge Daily Chart, Costco Wholesale Corp., (COST) Daily Chart COST Elliott Wave Technical Analysis FUNCTION: Counter Trend   MODE: Corrective STRUCTURE: ZigZag POSITION: Wave A.   DIRECTION: Downside in wave A.   DETAILS: The upside seems completed, looking for a correction in what could have been a top in wave (5) or wave 1 of (5).   COST Elliott Wave Analysis Trading Lounge 4Hr Chart, Costco Wholesale Corp., (COST) 4Hr Chart COST Elliott Wave Technical Analysis FUNCTION: Counter Trend   MODE: Corrective STRUCTURE: ZigZag POSITION: Wave {i} DIRECTION: Bottom in wave {i}. DETAILS: Looking for a bottom in wave {i} to then pullback and continue lower into at least one more leg lower in what could be either wave {iii} or some sort of wave C. Welcome to our latest Elliott Wave analysis for Costco Wholesale Corp. (COST). This analysis provides an in-depth look at COST's price movements using the Elliott Wave Theory, helping traders identify potential opportunities based on current trends and market structure. We will cover insights from both the daily and 4-hour charts to offer a comprehensive perspective on COST's market behavior.   * COST Elliott Wave Technical Analysis – Daily Chart* The daily chart suggests that the upside move appears to be completed, and we are now looking for a correction. This correction could signify the completion of a top in wave (5) or wave 1 of (5). Traders should be prepared for continued downside pressure as wave A unfolds. * COST Elliott Wave Technical Analysis – 4H Chart* The 4-hour chart indicates that we are looking for a bottom in wave {i} to then see a pullback. After this pullback, we anticipate at least one more leg lower, which could be either wave {iii} or some form of wave C.   Technical Analyst : Alessio Barretta Source  : Tradinglounge.com get trial here!  
    • Hang Seng Index: Elliott Wave Analysis Day Chart Hang Seng Index Elliott Wave Technical Analysis Function: Trend Mode: Impulsive Structure: Orange Wave 3 Position: Navy Blue Wave 3 Direction Next Higher Degrees: Orange Wave 3 (started) Details: Orange wave 2 looks completed. Now orange wave 3 of 3 is in play. Wave Cancel Invalid Level: 16044.39 The Hang Seng Index Elliott Wave Analysis for the day chart provides a detailed examination of the market's current trends and wave patterns. The analysis identifies the market's movement as part of an overall trend, indicating an impulsive mode rather than a corrective one. The specific wave structure under scrutiny is orange wave 3, which forms part of a larger navy blue wave 3. This suggests that the market is currently experiencing an upward trend characterized by successive impulsive waves. According to the analysis, orange wave 2 has completed, marking the end of the corrective phase within navy blue wave 3. With orange wave 2 concluded, the market has now entered orange wave 3, which is in progress. The direction anticipated next in this analysis is the continuation of orange wave 3, signaling further upward movement in the market. This phase, orange wave 3 of 3, indicates a strong impulsive trend within the broader wave structure, suggesting that the market is expected to continue its rise as part of the ongoing navy blue wave 3. An essential component of this analysis is the wave cancel invalid level, set at 16044.39. This level serves as a crucial reference point for traders, determining the validity of the current wave count. Should the market price move below this level, the existing wave analysis would be invalidated, necessitating a reassessment of the market's condition and potential strategic adjustments. This invalidation level is critical for risk management, providing traders with a clear threshold to monitor and ensuring that the wave analysis remains accurate. In summary, the Hang Seng Index day chart analysis identifies an upward trend in an impulsive mode characterized by orange wave 3 within navy blue wave 3. Orange wave 2 has been completed, and the market is now experiencing orange wave 3 of 3. The wave cancellation invalid level at 16044.39 is crucial for maintaining the accuracy of the current wave count and for effective risk management.   Hang Seng Index: Elliott Wave Analysis Weekly Chart Hang Seng Index Elliott Wave Technical Analysis Function: Trend Mode: Impulsive Structure: Orange Wave 3 Position: Navy Blue Wave 3 Direction Next Higher Degrees: Orange Wave 3 (started) Details: Orange wave 2 looks completed. Now orange wave 3 of 3 is in play. Wave Cancel Invalid Level: 16044.39 The Hang Seng Index Elliott Wave Analysis for the weekly chart focuses on the current trend and wave patterns in the market. The analysis identifies the market's movement as part of an impulsive trend rather than a corrective one, suggesting strong upward momentum. The primary wave structure being analyzed is orange wave 3, situated within a larger navy blue wave 3. This indicates a significant upward trend driven by successive impulsive waves. According to the analysis, orange wave 2 has been completed, marking the end of the recent corrective phase within navy blue wave 3. With orange wave 2 concluded, the market has entered orange wave 3, which is currently in progress. The expected direction in this analysis is the continuation of orange wave 3, suggesting further upward movement in the market. This phase, orange wave 3 of 3, points to a strong impulsive trend within the broader wave structure, implying that the market is likely to continue its rise as part of the ongoing navy blue wave 3. An important aspect of this analysis is the wave cancel invalid level, set at 16044.39. This level serves as a crucial reference point for traders, determining the validity of the current wave count. If the market price moves below this level, the existing wave analysis would be invalidated, requiring a reassessment of the market's condition and potential strategic adjustments. This invalidation level is vital for risk management, providing traders with a clear threshold to monitor and ensuring that the wave analysis remains accurate. In summary, the Hang Seng Index weekly chart analysis identifies a strong upward trend in an impulsive mode, characterized by orange wave 3 within navy blue wave 3. Orange wave 2 has been completed, and the market is now experiencing orange wave 3 of 3. The wave cancel invalid level at 16044.39 is critical for maintaining the accuracy of the current wave count and for effective risk management.   Technical Analyst : Malik Awais Source : Tradinglounge.com get trial here!  
×
×
  • Create New...
us