Schaeffer's Top Stock Picks for '25

WFC Brushing Off Criticism Over Personal Credit Decision

The company is ending all personal lines of credit

Digital Content Manager
Jul 9, 2021 at 10:17 AM
facebook X logo linkedin


Wells Fargo & Co (NYSE:WFC) announced yesterday that it was shuttering all existing personal lines of credit, which typically allows users to borrow anywhere from $3,000 to $100,000. The lines of credit will be shut down within the coming weeks, and Wells Fargo warned that it could have an impact on users' credit  scores. The decision is facing some backlash, however. Senator Elizabeth Warren in a tweet last night that these customers shouldn't have to see their credit  score drop "just because their bank is restructuring after years of scams and incompetence." 

The update is giving the company's stock a boost, WFC was last seen up 2% to trade at $43.18. Since touching an annual high of $48.13 in mid-May, WFC has turned volatile, though several sharp pullbacks have been mostly contained by the 100-day moving average. Plus, the $42 level has served as support since WFC gapped above here in April. A short-term bounce could already be in the cards for the equity, too. The stock's Relative Strength Index (RSI) sits just on the cusp of "oversold." 

Sentiment on WFC has been split. Of the 16 in coverage,  nine say "buy" or better, and seven say "hold." Analysts are expecting more upside for the stock. The 12-month consensus price target of  $49.30 is a 14.4% premium to current levels. 

Options bulls are likely cheering the bank stock's bounce. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 5.49 calls have been picked up for every put over the past 10 days -- a ratio that stands higher than 72% of readings from the past year. This suggests a healthier-than-usual appetite for calls of late. 

 

 

 

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter