Jim Cramer Says Wells Fargo is "Working to Become a Growth Bank" After Asset Cap Lift

Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer recently expressed his thoughts on. Cramer highlighted that he is “sticking with it for the trust,” as he commented:

“Wells Fargo’s up more than 20%… Now, though, banks are being valued on growth. I love buying growth stocks… Wells Fargo got a downgrade from Morgan Stanley amid a slew of upgrades… We own it for the Charitable Trust, and I think this is a real bad call. Wells under CEO Charlie Scharf hasn’t even [had] much of a chance to grow because it spent seven years under a Fed-imposed asset cap, punishment for the misdeeds of the previous management team. But now the asset cap’s gone, and Wells is working to become a growth bank with lots of capital markets exposure. And that’s why we’re sticking with it for the trust. What makes me think there’s still room to run? Because the big banks are still cheap on earnings… Wells Fargo does the same, just 14.”

Wells Fargo & Company (NYSE:WFC) is a financial services firm that provides banking, investment, lending, and wealth management solutions for individuals, businesses, and institutions.

While we acknowledge the potential of WFC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.