A drop in Wells Fargo’s (NYSE:WFC) share price despite its earnings beat may make this the right time to invest in the company.
Wells Fargo experienced a nearly 3 percent slump in its stock price after the company reported earnings of 75 cents per share, beating analyst expectations of 73 cents. Revenue spiked 6.4 percent to $21.6 billion, beating analyst expectations of $20.4 billion. The company also reported that year-over-year mortgage lending more than doubled from $84 billion to $129 billion.
According to MSNBC, the price drop on strong earnings is nothing to worry about but instead provides an opportunity for savvy investors to get their hands on a strong stock at a bargain price. Shares of Wells Fagro still had not recovered to pre-earnings prices as of mid-day trading Monday.